Terra (LUNA) is ruling the markets lately and seems like everyone wants a piece of it. Demand for UST (TerraUSD) as a stablecoin has been growing and that is why LUNA price hit an all-time high this month ($44.34). There's big news for all the LUNA Holders & users aka Lunatics - Columbus 5 Upgrade that will happen by the end of Sept. 2021. It was supposed to release on 9th September but the release date has been postponed by 3 more weeks. Checkout the basic Terra (LUNA) guide to know more about this protocol and how it works.
In this blog, we are going to discuss the key points to this upgrade and how they will impact Terra's ecosystem. Let's start!
What Is Columbus-5 Upgrade?
Columbus-5 is the most anticipated mainnet upgrade of the Terra Ecosystem. The changes were approved by governance voting and it is set to become the most important upgrade ever to happen on Terra Blockchain. One of the major goals of Terra is to integrate more blockchains and this upgrade would take it one step further towards this goal. Now let's have look at the major changes that would happen once Columbus-5 goes live:
- Seigniorage Burn: Terra's stablecoins achieve price stability by algorithmically adjusting its supply as per demand. The supply of stablecoin (Terra USD or Terra KRW) has to increase when demand is more. In order to mint 1 UST (Terra USD), an equivalent amount of LUNA is burned which is called Seigniorage. Price is stabilized through arbitragers in a decentralized way. A certain percentage of seigniorage was used reward oracles through community's fund. But now it will be burned completely and take those LUNAs out of circulation forever.
- Stargate Upgrade: Inter Blockchain Integration: The upgrade to Stargate will introduce Inter Blockchain Communication protocol (IBC) which is also adopted by Osmosis. The IBC provides support for interchain assets such as Solana, Polkadot, and Cosmos, etc. which means anyone can easily swap assets from these chains to Terra and vice versa. This will help in expanding Terra's ecosystem to the wider crypto community. There is one more migration called protobuf migration that could increase transaction speed by 10x-100x TPS. Terra transactions are quite fast already!
- Ozone and Wormhole: Ozone is Terraform Lab’s insurance protocol to provide coverage in case of any technical screw-ups! Known to be cheaper and more reliable as compared to other insurance protocols out there. Wormhole is simply a bridge between Terra and Solana.
Why Does Columbus-5 Matter?
This upgrade will have a major impact on Terra's ecosystem and serve as a huge milestone in its roadmap. It's going to introduce several key changes that will affect all LUNATICS:
- Seigniorage Burn could push LUNA's price even more as more adoption continues.
- Stargate and IBC upgrade will increase interoperability among other top blockchains. This will further increase Terra's adoption and provide more liquidity in the system. Also, Terra will be blazingly fast.
- Hackers are known to leverage technical loopholes to steal investor's money. Ozone protocol can provide another safeguard and reduce the risk of investors.
- Wormhole connects Terra with Solana and opens up a ton of opportunities for both chains. We know how Solana performed in 2021 so it makes sense to collaborate with such a cool community.
I am really excited for Columbus-5 because I am a LUNAtic myself. Do you hold some LUNA? Are you aware of this upgrade and its importance? Comment below!
Posted Using LeoFinance Beta
Columbus 5 is going to be a gamechanger for the Terra ecosystem and LUNA token.
The fact that the price of LUNA has dipped alongside Bitcoin is a gift from the market gods.
I hope the LeoFinance community is taking advantage.
PS. Change up the anchor text for your guide links to include the project name. Anchor text should be something that people search for example Terra LUNA guide.
Posted Using LeoFinance Beta
The best gift of 2021 :')
At least I am!
P.S Anchor text change is done! Thanks for the info Dane. Cheers!
Posted Using LeoFinance Beta
Another tip given to the LEO Finance members, Terra (LUNA) will provide for those willing to listen and invest in it.
Posted Using LeoFinance Beta
100% @behiver. It's one of the best investments I did this year and all thanks to the Leo community which pointed me towards it.
Posted Using LeoFinance Beta
I don't hold LUNA. I was just reading about IBC on Cosmos as I was researching one of its children, CRO. Now I'm curious if CRO will also have IBC implemented. This would also be good news for the Crypto.com ecosystem.
Posted Using LeoFinance Beta
Yeah, I think they were planning to implement IBC too. It makes sense because it would provide liquidity from all directions.
Posted Using LeoFinance Beta
Hey very usefull info!! im not holding LUNA yet, but i will search about it. I saw the chart and it have a really awesome growth.
Posted Using LeoFinance Beta
Yes, mate. It's a great project with real potential to go big. 3 digit number coming to LUNA. It will be awesome!
Posted Using LeoFinance Beta
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