Terra Luna Classic (LUNC) is the original native token of the Terra blockchain, which Terraform Labs launched in 2019. It was first called LUNA and served as the reserve asset of Terra's stablecoin ecosystem.
In May 2022, the algorithmic stablecoin UST lost its dollar peg and the ecosystem largely collapsed. A new chain, Terra 2.0, then took over the LUNA name, while the original chain became Terra Classic and its token was renamed LUNC.
Terra Classic is a proof-of-stake blockchain built with the Cosmos SDK. Validators stake LUNC, verify transactions and earn rewards.
LUNC used to keep stablecoin prices stable by being minted and burned against them. That mechanism has been largely inactive since the collapse, so today LUNC is mainly used for staking, governance votes and paying on-chain fees.
Data provided by CoinGecko
During the UST collapse, huge amounts of LUNC were minted, pushing the supply into the trillions. To bring it down, the community introduced a burn tax on on-chain transactions.
The burn tax rate has been changed several times through governance votes, and in 2026 a proposal to raise it reportedly passed. Some exchanges also burn part of their fees, but many analysts note that supply is falling slowly compared with the total.
Terra Classic is an unusual case: since the collapse, the community rather than a development company has run the chain. Software upgrades, burn policy and proposals related to UST are still being actively discussed.
On the other hand, the very large supply, limited core development resources and trust lost in the collapse are serious challenges. Legal proceedings involving the founders and the regulatory environment also matter, and this overview is not investment advice.
Links to major exchanges below. Check listing and fees on each exchange. Not investment advice; links may contain affiliate (referral) codes.