Buy Terra 2.0

After the collapse of the original Terra platform and its stablecoin TerraUSD (UST), Terra 2.0 emerged as a new blockchain without the known flaws of its predecessor. The old Terra network, now called Terra Classic (LUNC), suffered a major crash when UST lost its peg to the dollar. This led to the LUNA coin losing almost all of its value, impacting investors globally. To offset the losses and revitalize the network, Terraform Labs, led by co-founder Do Kwon, introduced a recovery plan: Terra 2.0.

Terra 2.0 is more than just a continuation of the original network. It is an entirely new blockchain that no longer relies on the algorithmic stablecoin model of Terra Classic. At its launch on May 27, 2022, the new LUNA2 token was distributed via an airdrop to holders of the old LUNA and UST tokens, using snapshots taken before and after the crash to determine the number of new tokens per holder. The focus is on restoring trust, stability, and security.

Unlike Terra Classic, Terra 2.0 is completely community-governed, with no interference from Terraform Labs. This network operates as a layer 1 blockchain, providing a platform for developers to build decentralized applications (dApps). Terra 2.0 shares core functionality with many other blockchains in the Cosmos ecosystem, making it compatible with various types of dApps, such as decentralized finance (DeFi) applications and NFT marketplaces.

During the launch of Terra 2.0, restrictions were placed on the sale of LUNA2 tokens to prevent immediate selling pressure and promote healthy token value growth. Investors with over a million LUNC or UST tokens prior to the crash did not receive their LUNA2 airdrops in full right away, but gradually unlock them over a period of two to four years. This measure aims to deter large investors from selling immediately to avoid potential price instability of LUNA2.

How did Terra 2.0 come about?

Terra 2.0 was established after the dramatic collapse of the original Terra network, where the algorithmic stablecoin TerraUSD (UST) lost its value and the linked LUNA token plummeted. To restore trust, Terraform Labs developed a recovery plan led by co-founder Do Kwon. This plan included creating a new blockchain without the risky algorithmic stablecoin structure and placed the community at the center of platform management. On May 27, 2022, Terra 2.0 was launched as a restart of the original ecosystem.

Terra 2.0 provides a versatile platform for investors and developers to leverage various blockchain applications, from financial services to unique digital experiences, with a strong focus on decentralized solutions and secure transactions.

• Decentralized Finance (DeFi): Terra 2.0 supports DeFi applications that allow users to borrow, lend, and trade without the involvement of traditional banks.
• NFT marketplaces: Developers can launch NFT projects on Terra 2.0, while users can collect and trade unique digital assets on the blockchain.
• Decentralized Applications (dApps): Developers can create a wide range of applications, from games to financial tools, using the secure and efficient infrastructure of Terra 2.0.
• Governance: LUNA2 token holders can participate in the network's decision-making process, contributing to the project's future direction.

Terra Classic (LUNC) and Terra 2.0 (LUNA2) are both blockchains with differing structures and objectives. Terra Classic operated on an algorithmic stablecoin, UST, allowing users to exchange LUNA for UST through a dollar peg. However, this system failed when UST lost its peg, resulting in the collapse of the entire network.

Terra 2.0, on the other hand, does not have an algorithmic stablecoin. The network is designed as a community-governed blockchain, without direct influence or support from Terraform Labs or Do Kwon. Terra 2.0 operates completely independently from Terra Classic and is considered a new ecosystem with its own blockchain.

The technical structure of Terra 2.0 is designed to provide a secure and efficient layer 1 blockchain integrated into the Cosmos ecosystem. Using the energy-efficient and scalable Tendermint Proof-of-Stake (PoS) mechanism, validators can confirm transactions and add new blocks. LUNA2 token holders can stake their tokens to earn rewards and enhance network security.

Governance through staking

LUNA2 holders can use their tokens for voting rights, influencing the platform's development. Community-driven governance proposals allow LUNA2 holders to vote on protocol updates, changes, or improvements.

Airdrop mechanism

During the launch of Terra 2.0, an airdrop of LUNA2 tokens was conducted for holders of LUNA and UST based on snapshots of their holdings before and after the Terra Classic crash. To limit selling pressure, the tokens are distributed gradually. For the first 21 days after the airdrop, tokens are in a 'bonded state', making them temporarily non-tradeable.

Decentralized applications and Cosmos integration

Terra 2.0 is built as a layer 1 blockchain in the Cosmos ecosystem, allowing developers to easily build new dApps and integrate existing projects using the Cosmos Software Development Kit (SDK). This integration also enables asset exchange and cross-blockchain application usage for users.

The LUNA2 token is at the core of the Terra 2.0 ecosystem, allowing holders to participate in decision-making processes for major updates and protocol changes, enhancing the decentralized nature of Terra 2.0. Users can also stake their LUNA2 to earn rewards and secure the network.

Unlike the original Terra Classic token (LUNC), LUNA2 does not have an algorithmic stablecoin partner and is designed to operate independently of Terraform Labs. Terra 2.0 aims for a controlled issuance of LUNA2 tokens to maintain value and supply stability, ensuring a healthy long-term ecosystem.

Staking LUNA2 is easy. Holders can stake their tokens to earn rewards and secure the network. Users can stake LUNA2 tokens through a staking portal on the Terra platform and select from various validators to verify transactions and add new blocks.

Rewards are calculated based on the amount and duration of the staked tokens, making staking on Terra 2.0 an attractive option for holders looking to generate passive income. Additionally, stakers benefit from voting rights and can participate in decision-making on important network developments.

With a strong focus on community-driven development and enhanced security measures, Terra 2.0 offers a platform that stands out from other blockchains:

• 100% community-owned: Terra 2.0 is entirely controlled by the community, without influence from Terraform Labs or founder Do Kwon. This gives users full control and promotes truly decentralized governance.
• Algorithmic stablecoin-free recovery: Unlike its predecessor, Terra 2.0 does not rely on an algorithmic stablecoin. This reduces market risk and instability that has previously led to crashes.
• Linear airdrop with vesting periods: The LUNA2 airdrop mechanism enforces a linear vesting period, preventing all tokens from being immediately tradable. This protects the token price from sudden selling pressure and ensures a more stable market value.
• Interoperability within Cosmos: Terra 2.0 is designed to seamlessly collaborate with other blockchains within the Cosmos ecosystem. This opens up new partnership opportunities and promotes cross-chain compatibility.
• Reputation and transparency: Terra 2.0 has enhanced transparency and risk management measures to rebuild community trust. With this approach, the project acknowledges past mistakes and takes steps to restore its reputation.

You can purchase Terra 2.0 (LUNA2) through Bitvavo. Our platform is suitable for both novice and experienced investors. Follow these steps to buy LUNA2 on our website or app:

1. Create an account or log in to your Bitvavo account.
2. Make a deposit by clicking "Deposit".
3. Go to the Terra 2.0 purchase page to see the price of LUNA2 tokens.
4. Enter the desired investment amount in euros or the number of LUNA2 tokens you want to purchase and click "Buy".

The price of Terra 2.0 is linked to the current market price and is automatically updated. After purchase, the LUNA2 tokens are stored directly in your Bitvavo account for easy management, trading, and quick response to market changes.

You can securely store your Terra 2.0 in your Bitvavo account, where most of the funds are secured via offline cold storage. While Bitvavo maintains high security standards, it is recommended to enable two-factor authentication (2FA) for additional security. With 2FA, you add an extra step to your login process, ensuring only you have access to your account.

Prefer to store your LUNA2 tokens in an external wallet? Verify the wallet address in your Bitvavo account before transferring for easy and secure transfer to a personal wallet for greater control and security of your assets.