Dear Lunatics,
The Columbus-5 Upgrade to Terra has now been released which means Terra has just gone Super Saiyan. Apart from the myriad of new Dapps that will soon be released following the upgrade (and will be covered in another article), below a short and concise summary of why its good for Luna.
Burning of Seignorage LUNA: Pre-Col5, LUNA burnt to mint UST used to go to a community pool. Post-Col5, this LUNA is now burnt forever, which will effectively make LUNA a deflationary asset. If supply goes down, and demand goes up, LUNA takes off to the M00N.
Increased LUNA staking rewards: Pre-Col5, swap fees for any transaction within the Terra wallet used to be burnt. Post-Col5, these are now paid out to LUNA Stakers as rewards, which should increase the amount of LUNA staked. Staked LUNA has a 28-day unlocking period, which safeguards it from Pump and Dumps, Rag Pulls and reactionary FUD sell-offs. More staked LUNA means a more stable supply, so once LUNA takes off to the M00N, it’ll be hard to stop.
Inter Blockchain Communication: Pre-Col5, Terra’s connection to other blockchains involved many workarounds (eg. Converting other stablecoins to UST) and was limited to certain dApps like Anchor. Post-Col5, Cosmos’ Stargate IBCP allows for Inter Blockchain Communication, which means that UST can now be directly used in other Cosmos-based blockchains like Solana, Polkadot, and soon, ETH. Also, DeFi Degenerates from other blockchain ecosystems can now easily participate in Terra dApps like Anchor, Spec, Pylon Gateway, Nexus, etc. With increased UST demand, LUNA takes off to the M00N.
Increased Speed and Bandwidth: Post-Col5, the Terra blockchain takes advantage of the performance improvement brought by Cosmo’s Stargate, with improved transaction speed and network bandwidth. A more efficient network means safer TeFi dApps, LUNA takes off to the M00N.
Other articles by yours truly:
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Disclaimer:
Also, non of the content is or should be considered financial or investment advise. I am no financial advisor, I am merely a content writer using freely available data and information to produce the best OC I can come up with for informative and entertainment purposes. Sources for the images displayed can be found in the references below.
