Terra is a decentralized stablecoin capable of expanding and narrowing its supply to stabilize unit prices. The reserve token provided by Terra is called Luna with a fixed supply, creating rewards from Terra deals.
With the explosion of decentralized economies, DApps (Decentralized Application) are beginning to realize the importance of price stabilization for digital currency units. Especially in utility token projects, it is difficult to build an economy on the tokens that are already speculated because we can easily see that the price of the coin increases abnormally with the border. As large as it is, it is almost impossible to build an exchange trading system based on those coins.
Therefore, although I have spent more than 2 years developing a lot of digital currency units on the market, there is still no really stable trading system and the use of digital money to make payment unit. Since then, many people have seen a huge opportunity from the development of a virtual currency at a stable price (Imagine that the Cryptocurrency can actually fulfill the role of a "currency"), or This is called a "stable-coin". However, to build a stable coin requires an extremely complex system, from economic organization to technical platform. So despite the tremendous potential, no stablecoin has been so successful so far, even USDT has a lot of problems as we have seen recently, and also rumors related to Bitfinex from Q3 - Q4 2017.
Terra is a decentralized stablecoin capable of expanding and narrowing its supply to stabilize unit prices. With its superiority over legal currencies, Terra operates under decentralized protection in terms of solvency, eliminating errors and the "Soros' attacks. In addition, Terra is involved in decentralized financial spending, ensuring that economic growth is distributed fairly through democratic consensus, instead of a politically integrated system. delegates are elected.
Binance Labs when investing in Terra said that Stablecoin is extremely important to the ecosystem (Crypto) and they are happy to support Terra team:
In addition to Binance, Terra is also invested by other major exchanges in the world such as Upbit, Huobi Capital, OKEx.
In order to be able to operate a currency with a decentralized protocol, the currency must provide a reserve with taxes collected from its network. Terra can do this by charging transaction fees from the blockchain network, since taxes are also transaction fees on a national payment network. However, unlike legal currency schemes, a protocol currency program must maintain a total reserve of decentralized assets. Through maintaining a total decentralized reserve, the system can operate through ensuring the ability to pay for narrow rounds (contractions) fully funded.
Terra will be deployed on many commercial platforms, as a means of exchanging when purchasing products and services. The value of the token will be tied to a fiat currency, such as US dollars (during this time). The reserve token provided by Terra is called Luna that comes with a fixed supply. Luna token creates rewards from Terra transactions and therefore appreciates value through the use of the Terra protocol. As you can see, Terra has the potential to become a true "money" unit on Crypto, not just a value for exchanging and trading on exchanges.
When it comes to the "power" of a coin, many people often think of breakthrough technology or ideas. But in fact, a large and stable ecosystem is the decisive reason for the sustainability of the coin, since the ecosystem is the place to ensure liquidity, as well as create valuable Practical use of the corresponding cryptocurrency.
The company behind Terra, TMON (Ticket Monster) is one of the 10 largest e-commerce companies in Korea, with a company value of up to $ 3.5 billion. Daniel Shin founded TMON and also founded Terra saying: "Imagine Amazon and click" Terra pay "when paying. You don't need wallets and other cumbersome things. All you know is a better deal. ” For simplicity, you can imagine Terra as Alipay on the Blockchain.
With a billion-dollar e-commerce platform and an e-commerce alliance of more than 40 million active users, Terra is completely grounded in aiming to be a practical application stablecoin, not just a single. purely an intermediary for speculation on cryptocurrency exchanges like most stablecoin now. This active e-commerce alliance creates an ecosystem of $ 25 billion for a real high liquidity when Terra is applied.
TMON (Ticket Monster)
Ticket Monster Inc. was founded in 2010 by Daniel Shin and is one of the leading e-commerce companies in Korea today. In 2014, 70% of Ticket Monster's transactions were completed on mobile devices and its customer base continued to expand to many different age segments. The company operates in three main verticals - Commodities, Localities and Tourism - and offers more than 47,000 SKUs (Stock Keeping Unit) through partnerships with about 15,000 sellers.
After two acquisitions of Living Social and then Groupon, the Korean e-commerce company loses the fundamental power developed by its Western counterparts from social commerce to pure product sales. In 2015, TMON separated from Groupon with an investment from private equity fund KKR and Shin regained control of the company's management, and brought TMON back to itself, a respectable rival in the race. fierce e-commerce in Korea.
Tiki.vn - a member of Terra Alliance
A very familiar name in Vietnam with hits of 35 million per month. Tiki is an e-commerce site with a strong foundation and a loyal user base. Born as a book selling website, after 7 years, Tiki became the leading e-commerce site, the story of Tiki inspired about an Amazon Vietnam. Tiki is the most invested company in Vietnam so far. In January 2018, Tiki confirmed cooperation with JD.com, a leading e-commerce platform in China, as well as Alibaba's main competitor.
Alliance Terra (Terra Alliance) is still expanding. With deep ties in the e-commerce industry, Daniel Shin and Terra are creating a strong digital economy for Terra's practical applications, even if the stablecoin is not yet available.
Support from many large funds
For the long term, Terra's potential for application is clear. However, the Terra team is not only interested in far-sightedness. Even in the pre-digital market, Terra also has really big partners supporting the project.
With a strong foundation and wide relationship, Terra attracted Kakao Ventures, Kakao Investment, Dunamu & Partners, Hashed, ... all of which are leading and prestigious investment organizations in Korea, where their main activities are located. of TMON e-commerce platform. But not only Korea, Terra also received investment from a series of other large investment funds such as 1kx, Kenetic, GBIC, Monex Group, Translink Capital, ... Or especially Polychain Capital, one of the first Crypto investment funds. First backed by Sequoia Capital, America's leading reputable venture capital fund with successful deals like Apple, Google, Oracle, PayPal, Stripe, YouTube, Instagram, Yahoo! and WhatsApp ... Terra is the first and only project in Korea invested by Polychain Capital.
The project is currently supported by four of the world's largest electronic currency exchanges, Upbit, Huobi Capital, OKEx and Binance, all working together with Terra with a capital of $ 32 million. Invested by large floors, listing on the floor is not a problem for Terra. The exchanges will not let the investment project be downgraded, so there will be necessary support. More specifically, the investment agreement is a token-based investment rather than a share investment, which helps the token value to be guaranteed at launch and publicly posted. Terra plans to hold a private sale in a few weeks to get more money into Terra's price stabilization fund.
Stablecoin Terra model
The Terra protocol ensures payment by a total reserve, helping to retain its value from the transaction fee collected from the network. The protocol works through secure payment, ensuring that the market value of Terra's greater value reserves is circulating.
For each predetermined time period, the protocol participates in the following mechanisms to stabilize Terra's price: Estimated price through the depositors vote (deposit holder vote) and Maintain full reserve ( Full Reserve)
- Estimate the price through the depositors vote (deposit holder vote): Terra's current price estimation protocols relate to the assets it attaches by taking votes (valuable in stock). votes) of depositors in Stability (Stability Reserve).
- Maintain full reserve: The protocol maintains a "stable reserve" made up of user deposits with different bonuses to ensure over-reserved systems. The protocol for defining Luna token with a fixed supply of bonuses from Terra's transactions, is paid for contributions to the price stability and fairness of the system. Users are encouraged to deposit Luna in Reserve, as deposits bring income from transaction fees collected from the network. The protocol applies a small fee that varies from Terra transactions, corrected to ensure that the market value of Stability Reserve exceeds Terra's circulating supply.
- The Terra system stabilizes prices by expanding and narrowing the supply of money: The protocol of expanding and narrowing the token Terra supply to correct the exchange rate, leveraging the money supply theory quan = price.
- When Terra's exchange rate was lower than the fixed price, the reserve to buy Terra off the market and burn it, narrowed the money supply at the price = money supply.
- When Terra's exchange rate is less than a fixed price, the new Terra creation system and takes proposals / votes from Luna's shareholders to participate in decentralized financial spending to improve the system.
Thus, although Terra is stablecoin, Luna token is very important to help Terra's price. Luna is a decentralized asset that provides value to the reserve fund, while helping to transparent and disperse the Terra system. Terra holds the price of Stablecoin but Luna, with a limited supply, will raise the price according to the actual application value of the system as well as market demand. Stake of Luna in the reserve fund also benefited from Terra's trading fee on the system, which is expected to have a lot of transactions if Terra applies the e-commerce ecosystem that the development team is building.
Information about Luna token and stablecoin Terra:
- Supply: 1 billion tokens
- Token Luna and Terra will be locked for 3 months after going to the floor. After that, Luna will be vesting every month for the next 6 months, while Terra will be 15 months
- How to distribute Luna token: 40% - for Terra Alliance partners, ecosystems and first strategic investors; 20% - reserved for stable reserve fund; 20% - reserved for team members; 20% - for both Private-Sale investors and Public-Sale
Daniel Shin is one of the co-founders. He is also the founder and executive director of TicketMonster, Korea's leading e-commerce platform. He is also a co-founder and member of the board of Fast Track Asia, a company that has established and sold other businesses such as Fast Five and FoodFly. Daniel is known for his expertise and deep network in e-commerce. He holds a Bachelor of Economics from Wharton School of Undergrad.
Do Kwon is another co-founder of Terra. He also founded and is the CEO of Anyfi. During the time in Anyfi, Do Kwon co-founded and has several important corporate patents on decentralized network and routing systems. He is also a software engineer at Microsoft and Apple, and graduated from Computer Science at Stanford University.
Nicholas Platias is the Research Manager. Previously founded Guru Labs, he also developed algorithms and distributed systems at Nest and RelatelQ. Nicholas studied Mathematics and Computer Science at Stanford and won many medals at the International Mathematical Olympiad
Evan Kereiakes is a financial researcher. He worked at the Federal Reserve Bank of New York for over 7 years. He is the Japanese Portfolio Manager for the foreign exchange reserve portfolio. Previously, he was an economic analyst at the US Treasury, also worked with the White House Economic Council. Evan studied engineering at Duke and the University of Illinois, also with an MBA from the University of Chicago.
Don Kim is the Sales Manager. Don is the Business Development Manager at GOPAX of Korea's electronic money exchange. Before that, he was a military diplomat for the Korean Air Force and studied the Government at Harvard.
Wayne Shu is the head of strategy. After leaving Stanford to participate in many projects, Wayne sees the potential for electronic money to change the way financial institutions work.
KJ Lee is the head of the product. He brought to the table eighteen years of experience in project management and development. KJ was also a Development Manager at Mesh Korea, also passed TicketMonster as Product Owner. He is an expert in logistics, supply chain and payment process.
CJ Han is the Chief Financial Officer. With eight years of experience in portfolio management as well as in fixed income business, currencies and commodities, he also holds a Bachelor of Economics at the University of Pennsylvania.
Gigi Kwon is the Head of Communications. She is the Marketing Director at Uber, is the Regional Director for corporate marketing and Eats Uber CRM and paid online campaigns. Gigi is also a former associate at a New York-based PR agency, holding the position of Communications at the University of Pennsylvania.
Comparison with the decentralized stablecoin: MarkerDao (DAI)
Currently, MakerDao platform and stablecoin DAI limit the use of real world in addition to margin lending to fund electronic money transactions. Dai can be purchased and used by most people, but it still faces many obstacles in trying to expand applicability, application areas and access to financial services. For example, no standard business will create DAI (basically DAI borrowing) on the platform because you will have to risk losing your collateral to a "keeper" in the night. and wake up the next day to find yourself 15% poorer.
Terra achieves stability for the currency basket by adjusting the money supply, using stable Luna tokens to sign money supply contracts as needed. Luna was originally converted by statutory currencies and charged a small transaction fee on Terra transactions. This gives Luna a real utility as a stable mechanism because its value is converted by global legal currencies and Terra transaction fees, which is a different approach from that of MakerDao. Luna owners are doing a utility for the benefit of the ecosystem, such as placing their tokens in the stability reserve or earning these transaction fees. It is important to note that your property will not be confiscated as in the MakerDao model.
Decentralized solutions should reduce costs for the largest number of users, instead of increasing costs. Therefore, MakerDao and Dai protocols still haven't solved the optimal stablecoin use case - creating a decentralized currency that will be widely used in everyday life. There are many other variations on Maker models, such as Havven, BitShares, but they all have the same functionality that has a flaw in protocol design that makes them waste money and prevents application indeed, or worse will cause significant damage.
Despite a large ecosystem. However, Terra has just started developing the cryptocurrency community. The first information Terra published widely was news about a series of large floors and funds that invested in Terra. On the Telegram project, Terra also attracted more than 3,300 members. The project is still in the pre-sale stage, the communication and marketing activities have not been strongly promoted by the team. But in the community has begun to appear much information sharing about this potential project. A lot of pool pre-sale has started to deal with the project with different prices.
In the future, Tiki will have a livestream with Terra's representative in Vietnam - Mr. Hoang Linh (CEO of Insight Group). Information will be updated on Terra Vietnam's media channel
Information channels about Terra: