This means that LUNA coins have an elastic supply that fluctuates according to the needs of Terra’s collateralization mechanism. While Terra’s stablecoins ensure seamless transactions and the stability of fiat currencies, the Terra crypto network uses its native LUNA currency as a utility and governance coin to operate the collateralizing mechanisms that back and secure the price stability of the Terra network's stablecoins. Terra stablecoins offer seamless cross-border value exchange and instantaneous swaps between one another, all while employing instant settlement and extremely low fees for use by anyone, anywhere. Terra has already rolled out numerous stablecoins, including: TerraUSD (UST), TerraCNY, TerraJPY, TerraGBP, TerraKRW, TerraEUR, and the International Monetary Fund’s TerraSDR for use in a wide range of global marketplaces. Stablecoins are smart contract-enabled cryptographic versions of global fiat currencies that are built to reduce the volatility commonly associated with digital assets. To enable the use of Terra’s network for retail payment services, Terra’s partners use Terra stablecoins. For users, Terra differentiates itself from competitors with discounted transaction fees - charging only 0.5 - 2%, while 2.5 - 3% is the industry norm. This model allows Terra’s technology to potentially save payment service providers hundreds of millions of dollars per year. As a comprehensive end-to-end payment solution, Terra manages to circumvent the entire existing fragmented payment infrastructure. Terra was built using Cosmos blockchain technology and is designed to challenge incumbent retail payment apps. To realize this vision, Terra helped build an ecommerce alliance with 15 initial partners that account for a combined $25 billion USD in Gross Merchandise Value (GMV), and a 45 million-strong customer base. Terra has built a next-generation blockchain payment network for the growing Asian ecommerce market that seeks to improve efficiency for payment service providers and increase value for customers. Myriad undifferentiated products operate without a clear revenue model or core product value, resulting in high user acquisition and retention costs. Asia’s digital payments industry, in particular, is extremely crowded, with ApplePay, SamsungPay, KakaoPay, Alipay, and over 45 others in use.
However, most evolve slowly, and today’s payment solutions tend to be locally confined, reliant on rent-seeking intermediaries, and built to operate on outdated infrastructure. The Terra (LUNA) Crypto Payment Solution and Asian Ecommerceĭigital payment systems are essential to the global economy and have been used for decades.