Terra blockchain and dApps explained in detail
Terra is a PoS blockchain built using the Cosmos SDK. Cosmos SDK uses Tendermint BFT consensus mechanism which is an open source platform developed by the Cosmos team. Terra is a stable coin platform which uses Luna the base token for stabilising the price of currencies. Terra aims to bring real world assets, currencies and use cases to decentralised economy.
Luna is the native token in Terra. Total 985M Luna are in circulation out of which almost 32% are staked. The current staking reward is 11.2% APY. (Source: Terra Station)
Terra has on chain governance which requires the holder of Luna to submit a proposal by depositing some Luna. A minimum of 512 Luna is needed for the proposal to be valid for voting. Proposal for changing any blockchain parameter is automatically implemented if the proposal is passed. Parameter changes do not need any coding changes. More complex proposals need the community to get them implemented somehow. Complex proposals need coding changes. Terra core team is the one which is will take the implementation ahead.
Terra has an inbuilt automated market maker which maintains the peg for stablecoins. Terra has validator oracles which report the real world prices of stablecoin vs Luna from exchanges. These prices are used in the market making algorithm.
