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, although not hitting ATH, have seen positive development since the Columbus 5 upgrade was implemented 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 to Terra
On September 30, 2021 – the blockchain network Terra implemented a major mainnet upgrade called Columbus 5. This upgrade adds several new and updated features to Terra, most notably a change in the operational mechanics behind its LUNA token, one of Terra’s two tokens on the side, UST.
This relates in particular to what the Terra team calls the “Treasury Module Logic” of the Terra Protocol. According to the 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 burned as part of the conversion to UST and not 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 the introduction of UST in a flourishing cross-chain, internet-native environment. As a result, higher demand for UST pushes LUNA’s demand curve outwards, while LUNA’s supply curve contracts. “
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