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About Terra
LUNA is the native utility and governance token of the Terra blockchain, a decentralized platform established following the transition from the original Terra Classic network. Operating on a Proof of Stake (PoS) system using the Tendermint consensus mechanism, LUNA is used to secure the network through staking, pay for transaction (gas) fees, and participate in community-led governance. Unlike its predecessor, the current Terra ecosystem focuses on a decentralized economy without a native stablecoin. Stakers earn rewards from network activity and a fixed annual inflation rate, while the protocol employs slashing to ensure validator accountability.
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