LUNI is a meme token created on Terra with real utility and functionality


INTRODUCTION

LUNI is a meme token created on Terra with real utility and functionality. We created our project to bring new entertainment and features to the Terra blockchain. Terra Chain, created in 2018 and launched in 2019 is a modern, secure, decentralized and perspective network based in South Korea.

Prior to the release of LUNI, the founders conducted thorough research and analyzed several independent chains such as ETH, BSC, SOL, ADA, NEAR and many more to estimate which is the best platform to launch new tokens in November 2021.

The Terra protocol

The Terra protocol is the leading decentralized and open-source public blockchain protocol for algorithmic stablecoins. Using a combination of open market arbitrage incentives and decentralized oracle voting, the Terra protocol creates stablecoins that consistently track the price of any fiat currency. Users can spend, save, trade, or exchange Terra stablecoins instantly, all on the Terra blockchain. Luna provides its holders with staking rewards and governance power. The Terra ecosystem is a quickly expanding network of decentralized applications, creating a stable demand for Terra and increasing the price of Luna.

Terra and Luna

The protocol consists of two main tokens, Terra and Luna.

Terra: Stablecoins that track the price of fiat currencies. Users mint new Terra by burning Luna. Stablecoins are named for their fiat counterparts. For example, the base Terra stablecoin tracks the price of the IMF’s SDR, named TerraSDR, or SDT. Other stablecoin denominations include TerraUSD or UST, and TerraKRW or KRT. All Terra denominations exist in the same pool.

Luna: The Terra protocol’s native staking token that absorbs the price volatility of Terra. Luna is used for governance and in mining. Users stake Luna to validators who record and verify transactions on the blockchain in exchange for rewards from transaction fees. The more Terra is used, the more Luna is worth.

How the Terra protocol works

Stablecoin

Stablecoins are the main feature of the Terra protocol: crypto assets that track the price of an underlying currency. As a digital form of currency, Terra stablecoins can be used just like fiat currency with blockchain's added benefits: an unchangeable public ledger, instant transactions, faster settlement times, and fewer fees.Imagine the whole Terra economy as two pools: one for Terra and one for Luna. To maintain the price of Terra, the Luna supply pool adds to or subtracts from Terra’s supply. Users burn Luna to mint Terra and burn Terra to mint Luna, all incentivized by the protocol's algorithmic market module.

Stablecoins are only valuable to users if they maintain their price peg. The Terra protocol uses the basic market forces of supply and demand to maintain the price of Terra. When the demand for Terra is high and the supply is limited, the price of Terra increases. When the demand for Terra is low and the supply is too large, the price of Terra decreases. The protocol ensures the supply and demand of Terra is always balanced, leading to a stable price.

Expansion and contraction

Expansion: When the price of Terra is high relative to its peg, supply is too small and demand is too high. The protocol incentivizes users to burn Luna and mint Terra. The new supply of Terra makes its pool larger, balancing supply with demand. Users mint more Terra from burned Luna until Terra reaches its target price. The Luna pool gets smaller in this process, increasing the price of Luna.

Contraction: When the price of Terra is too low relative to its peg, supply is too large and demand is too low. The protocol incentives users to burn Terra and mint Luna. The decrease in Terra’s supply causes scarcity, and the price of Terra increases. More Luna is minted from burned Terra until Terra reaches its target price. The Luna pool increases and lowers in price.

Luna is the variable counterpart to the stable asset Terra. By modulating supply, Luna's price increases as the demand for stablecoins increases.

The market module and arbitrage

The price stability of Terra is achieved by the protocol's algorithmic market module, which incentivizes the minting or burning of Terra through arbitrage opportunities. Arbitrage occurs when a user profits from price differences between markets.

The Terra protocol's market module enables users to always trade 1 USD worth of Luna for 1 UST, and vice versa, incentivizing users to maintain the price of Terra. This same principle is true for all Terra stablecoin denominations.

Example

If 1 UST is trading at 1.01 USD, users can use the market swap feature of Terra Station to trade 1 USD of Luna for 1 UST. The market burns 1 USD of Luna and mints 1 UST. Users can then sell their 1 UST for 1.01 USD, profiting .01 USD through arbitrage, adding to the UST pool. This arbitrage continues until UST price falls back to match the price of USD, maintaining Terra's peg. The same arbitrage mechanism works in reverse for contraction.If 1 UST is trading at .99 USD, users can buy 1 UST for .99 USD. Users then utilize Terra Station's market swap function to trade 1 UST for 1 USD of Luna. The swap burns 1 UST and mints 1 USD of Luna. Users profit .01 UST from the swap. This arbitrage continues, and UST is burned to mint Luna until the price of UST rises back to 1 USD.Scalability

Example

The Terra protocol is scalable: it is designed to maintain Terra's price stability regardless of market size, volatility, or demand. The monetary policies encoded into the protocol ensure its durability and resilience in all market fluctuations.Seigniorage is the value of a coin minus the cost of its production. In early versions of the Terra protocol, seigniorage was diverted to fund various community projects. While seigniorage can create enormous value, it also creates inflation in the system. All seigniorage in the Terra protocol is burned, making Luna deflationary in nature.TOKENOMIC

Seigniorage and deflation

Public sale (60% of TS): 6,000,000,000 $LUNI tokens are paired with 15,000 UST to create tradable assets on TerraSwap during token launch. Everyone who wants to invest early has that opportunity with no extra steps.

To be burned (15% of TS): 1,500,000,000 $LUNI tokens will be burned by deleting them from TS and sending them to a special Terra wallet that acts as a black hole. This burning is important to ensure that the circulating supply will not increase drastically in the future, which will create unwanted inflation.

Marketing and growth (10% of TS): 1,000,000,000 $LUNI is kept in reserve for all marketing related actions. That includes paid promotions, giveaways for the community and special marketing events. This wallet is unlocked because marketing has to start from scratch to be successful.

Ecosystem reserve (10% of TS): 1,000,000,000 $LUNI was initially locked for 1 month and is dedicated for events planned in
the future. That includes listings on DEX, CEX and rewards for staking.

Team wallets (5% of TS): There are two team wallets and each of them has 250,000,000 $LUNI. Both wallets are locked initially for 1 month and will be used in the future to grow our team by
hiring new blockchain specialists like developers and analysts.


We minted 10,000,000,000 $LUNI tokens before the launch.
There was no IDO/ICO nor private sale, only fair public launch to evenly distribute tokens.

As a result of described approach, the biggest wallets hold about 5% of TS what guarantees stability within the system.

Even founders and team members had to buy LUNI like everyone else once the token was launched - no OTC and other suspicious actions popular on different chains.

PROJECT WALLETS

LUNI project is fully transparent from the very beginning. All public transactions are always broadcasted to our community on Telegram and recorded forever on our Discord channel for further analysis/audit.

Mint & burn wallet
Marketing and growth wallet
Ecosystem reserve wallet
Team #1 wallet
Team #2 wallet
Contact Information
Username : ciung_lee
Profile : https://bitcointalk.org/index.php?action=profile;u=2712533
TerraStation Wallet : terra1aezf2l4jveayw7teglquv6ekyfep7uxppzw7l0

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