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LUNATICSLUNATICS
Zimb@bbs profile image
Dec 18, 2021

There are many arguments as to why LUNA might be one of the best bets in the crypto industry. Here are a few takeaways. Feel free to add what I missed or tell me where you think I'm wrong.

1) Every UST stablecoin minted is 1 dollar's worth of LUNA burned, giving more value to the remaining LUNAs. More UST created = LUNA value rises.

2) Terra/LUNA Blockchain is with Fast & Low fee transactions. Not subject to DDOS attacks like Solana frequently is, because it still has base fees. A coordinated DDOS attack would cost a lot in transactions.

The above are the foundations of the LUNA economy. But here are the building blocks :

3) UST is a totally decentralized stablecoin. Nobody can censor it. This is not the case of the 3 leading stablecoins USDT (Bitfinex/tether), USDC (Conbaise/circle), BUSD (Binance). There are many examples in the short history of stablecoins where the top 3 had a direct intervention from their corporation, freezing funds for example. If a big country decides to regulates stablecoins in the future, Terra will be immune to this.

relentless growth - UST about to overtake  DAI. And BUSD is nextrelentless growth - UST about to overtake  DAI. And BUSD is next

4) To retain UST, Terra must attract capital interest and retain it with good products. Anchor is the #1 APP in the ecosystem, providing an impressive, stable, 20% APY. Many protocols are then built around those yields (no-loss lotteries, no-loss charities, no-loss IDO investments, etc).

As the whole crypto ecosystem grows, more money will enter into stablecoins, regardless of bull or bear markets. If Terra can attract a good portion of the stablecoins, LUNA's value will grow indefinitely as individuals and funds enter the space. We're early in the adoption curve of the crypto market, and the financial industry is just starting to join.

If I had to guess, I'd say we are barely entering the "Early majority" portion of the adoption curve of crypto. And LUNA is in an even earlier stage.

I'd say we are barely entering the "Early majority" portion of the adoption curveI'd say we are barely entering the "Early majority" portion of the adoption curve

Each blockchain has its uses : Bitcoin is the store of value, ETH the smart contract king, SOL the fast one, etc. and Terra is the MONEY blockchain. It's possible we're going to see a bullrun of it's own for Terra only, once traditional finance invades our space. They won't come for the SOV (Bitcoin), this one is for investors. They'll come for the money yields.

Call me crazy, but I think LUNA has the potential to surpass Bitcoin (not make it obsolete, I only mean surpass it in capitalization). Low inflation, infinite value accrual, burning mecanism, eco-friendly, uncensorable, governable, incentivizable. Welcome to the new paradigm :)

As creator Do Kwon said, I'll also try to be "the last one holding a whole LUNA".

EDIT 1 : I published part 1 of the Terra protocols presentation : Anchor protocol.

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