What is Terra (LUNA)? One of the most important aspects of the cryptocurrency market is understanding what each coin does. The more you know about a coin, the better off you are when investing in it. This article will provide an overview of Terra’s function and technology to help you decide if this is a good investment for you.
Αs stated in the white paper of the cryptocurrency:
“Bitcoin’s extreme price volatility is a major roadblock towards its adoption as a medium of exchange or store of value. We propose a cryptocurrency, Terra, which is both price-stable and growth-driven. It achieves price stability via an elastic money supply, enabled by stable mining incentives. It also uses seigniorage created by its minting operations as transaction stimulus, thereby facilitating adoption. The Terra Protocol offers strong incentives for users to join the network with an efficient fiscal spending regime, managed by a Treasury, where multiple stimulus programs compete for financing.”
Because of its interest in expanding retail, Terra plans to start its public release with a 0.001% transaction fee. The first 100,000 users will also be rewarded with another 0.001% transaction fee. The transaction fee for any transaction after that will be 0.1%. Once the fee is 0.001%, it will increase to 0.1% increments every 10 seconds. The fee decreases to 0.01% every 500 seconds. The main goal of Terra's fee structure is to remove the need for a transaction fee altogether. The cryptocurrency's creators hope that the flat fee structure will be good enough to gain traction in the retail and e-commerce industry. The cost of a transaction at Terra will be considerably lower than the fee currently charged by online stores and is also lower than the cost of many current cryptocurrencies.
Store Owners Can Accept Terra as a Form of Payment
Retailers can purchase a Terra "monetary unit" (Tera) from an exchange and then immediately sell it to consumers. Buyers can then buy goods and services from retailers using the Terra "TeraCents" they earn. The retailer earns TerraCents and continues to earn Tinctures for every transaction made through the Terra network. When the Terra tokens (TeraCents) are sold, they are collected by the system and held in Terra's address. Demand for Terra (LUNA) is Strong After it was released in September 2018, Terra (LUNA) has seen a massive demand from users who want to use cryptocurrency in everyday life. Since the price of a Terra (LUNA) is tied to the US dollar, it means that a dollar purchased in Terra (LUNA) goes as far as a dollar purchased in a fiat currency.
The rise in its price
On 1st August 2021, Terra (LUNA) was priced less than $12, however, the previous month proved to be an exciting one for the coin as a bullish pattern engulfed it and the price soared close to $35! The biggest catalyst being cited behind this huge spike is the acceptance of Wrapped Luna & TerraUSD on Coinbase Pro (one of the top centralized crypto exchanges) on August 12. New upgrades to the Terra network may continue to spike the price of LUNA, much like the case with any other major blockchain and its tokens/coins.
LUNA is one of the biggest movers in the crypto world today. It is up more than 35% over the past 24 hours. Investors are increasingly wondering what the experts think in terms of Terra price predictions. At the time of writing, LUNA trades at $41.21 per token. The site Coinpedia lists a rather wide bullish and bearish range of price targets for the LUNA. However, should a bearish market take place, this token could trade around the $4 level.
Terra is a new type of cryptocurrency designed to be used in stores, online, and in apps. This cryptocurrency works differently from other currencies and this will appeal to retailers and consumers. This currency will not only reduce transaction fees but also offers a new form of payment that does not involve credit cards or cash. With Terra, consumers will be able to make small purchases in stores with no worries of chargeback or fraud. This is especially important in retail stores, especially in crowded retail areas such as shopping malls and night markets where payment methods such as credit cards or cash are difficult to use.
This digital currency is a game-changer for online retailers that want to keep costs down and their customers happy.