Terra is a decentralized payment ecosystem. It is based on cosmos blockchain that uses fiat-pegged stable coins to create a cryptocurrency that does not fluctuate with the cryptocurrency market, hence mitigating the vulnerability of a volatile cryptocurrency. Stable coins are a subset of cryptocurrencies tied to fiat currency at a 1:1 ratio. The most widely used stable coin within the Terra ecosystem is TerraUSD (UST). Additionally, it is a blockchain capable of running its decentralized applications (DApps).
Terra features its native token, LUNA, which is used to secure the protocol’s stable coins. Furthermore, this native token enables users to vote for network governance. It has a market capitalization of $34 billion, according to CoinMarketCap. What’s interesting here is that LUNA does not have a fixed supply because its supply changes to the number of stable coins on the market, hence balancing the value of stable coins.