TerraUSD listed in Tokenbase

Tokenomics of Terra Protocol

LUNA, UST, and all other stablecoins running on the Terra protocol are tightly connected. Terra is one of the few protocols where the whole underlying infrastructure from the blockchain to the built apps on top is focused on stablecoins. LUNA is the native utility token of the Terra blockchain. It is responsible for transaction fees and validator staking related to the Delegated-Proof-of-Stake consensus algorithm and stabilization of UST. Today, LUNA is the second biggest network of staked value after Ethereum. Terra incentivizes two major activities for the LUNA tokens: burning and staking. Each time UST is minted, the equal value of LUNA gets burned, reducing the total supply of LUNA. On the other hand, the protocol incentivizes LUNA holders to stake their coins for additional rewards from the validators. Since 2020 Terra waives any block rewards and relies only on the collected transaction fees. All these strategies aim at reducing the supply of available LUNA tokens in circulation. As of today LUNA is a deflationary asset.

Total Value Locked of Terra by Protocol.
Figure 1: Total Value Locked of Terra by Protocol. Source: Footprint Analytics

The classification of UST according to the ITC:

Figure 2: The UST Tokenbase entry (Source: https://itin.itsa.global/YMJX3H8H5)

List of all Terra tokens:

Figure 3: Tokenbase list with all Terra tokens (Source: https://api.itsa.global)

The International Token Standardization Association (ITSA) e.V.

The International Token Standardization Association (ITSA) e.V. is a not-for-profit association of German law that aims at promoting the development and implementation of comprehensive market standards for the identification, classification, and analysis of DLT- and blockchain-based cryptographic tokens. As an independent industry membership body, ITSA unites over 100 international associated founding members from various interest groups. In order to increase transparency and safety on global token markets, ITSA currently develops and implements the International Token Identification Number (ITIN) as a market standard for the identification of cryptographic tokens, the International Token Classification (ITC) as a standard framework for the classification of cryptographic tokens according to their inherent characteristics. ITSA then adds the identified and classified token to the world’s largest register for tokens in our Tokenbase.

  • The International Token Identification Number (ITIN) is a 9-digit alphanumeric technical identifier for both fungible and non-fungible DLT-based tokens. Thanks to its underlying Uniform Token Locator (UTL), ITIN presents a unique and fork-resilient identification of tokens. The ITIN also allows for the connecting and matching of other media and data to the token, such as legal contracts or price data, and increases safety and operational transparency when handling these tokens.
  • The International Token Classification (ITC) is a multi-dimensional, expandable framework for the classification of tokens. Current dimensions include technological, economic, legal, and regulatory dimensions with multiple sub-dimensions. By mid-2021, there will be at least two new dimensions added, including a tax dimension. So far, our classification framework has been applied to 99% of the token market according to the market capitalization of classified tokens.
  • ITSA’s Tokenbase currently holds data on over 4000 tokens. Tokenbase is a holistic database for the analysis of tokens and combines our identification and classification data with market and blockchain data from external providers. Third-party data of several partners is already integrated, and API access is also in development.

Remarks

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International Token Standardization Association

International Token Standardization Association

The International Token Standardization Association (ITSA) is a not for profit organization working on holistic market standards for the global token economy.