What is Terra?
Using clever tokeneconomics along with strategic cooperation, Terra aims to become the first price-stable, widely adopted cryptocurrency. It has been a great sensation in the South Korean market. Terra is special due to its dual-token ecosystem. The two tokens are Terra and Luna. Terra is a stablecoin which will be used by people in the real-life to carry out transactions. Luna is a staking coin circulating in Terra's proof-of-stake environment. Luna is not stable. What differentiates Terra from other proof-of-stake systems as EOS is that Terra doesn’t increase its flowing stock to reward its users. Unlike other proof-of-stake systems like EOS, Terra doesn’t increase its circulating supply to reward its stakeholders. They get "Terra tax" which is an interest of all the activities occurring within the system. Another great feature of Terra’s staking mechanism is that users don’t need to actively take part in it. They can just transfer some Luna tokens to an active validator and get passive income. So, owners can earn rewards in a system, which has made noticeable progress eventually, without having to participate in it actively.