Terra implements Columbus 5 upgrade, trends positive, but does not reach ATH

Terra implemented a major upgrade to its network protocol called Columbus 5 and LUNA’s token value this week and has been doing well since then. However, it has not regained the all-time high (ATH) on September 10, 2021 of $ 43.54 and a 24-hour trading volume of $ 4.84 billion.

As of today, the price is $ 37.89 and, according to the latest statistics, has a market capitalization of $ 15.15 billion.

LUNA is one of two cryptocurrencies associated with Terra (which originated in South Korea) and is next to the stablecoin “UST”. Terra is a cryptocurrency network created by Terraform Labs in early 2018.

LUNA’s performance indices, while not reaching ATH, have seen positive development since the implementation of the Columbus 5 upgrade on September 30, 2021, reaching $ 38.37 on October 1, 2021 with a 24-hour volume of $ 1.3 billion.

Columbus 5: A major upgrade for Terra

On September 30, 2021 – the blockchain network Terra implemented a major mainnet upgrade called Columbus 5. Several new and updated features were added to Terra with this upgrade, most notably a change in the operational mechanics behind its LUNA token, one of Terra’s two tokens alongside UST.

This relates in particular to what the Terra team calls the “Treasury Module Logic” of the Terra Protocol. According to official documentation, the Treasury Module functions as the “central bank” of the Terra economy. In essence, it serves as a means by which the various indicators of macroeconomic token activity are measured themselves before “monetary policy levers” are adjusted based on this information.

As a result of this upgrade, part of the LUNA supply will be permanently burned to regulate LUNA’s token value as well as the demand for the associated UST token. Una will now be permanently incinerated as part of the conversion to UST instead of being transferred to the communal pool as it worked before.

According to an official tweet from the Terra team

“By closely linking LUNA demand with UST demand, LUNA value recording becomes a function of introducing UST in a thriving cross-chain, internet-native environment. As a result, higher demand for UST shifts LUNA’s demand curve outwards, while LUNA’s supply curve contracts. “

What do you think about this topic? Write to us and tell us!

Disclaimer of liability

All information contained on our website is published to the best of our knowledge and belief and only for general information purposes. All actions of the reader in relation to the information on our website are entirely at your own risk.

Comments are closed.