Brief History of Terra (UST)
Terra, or UST, was a stablecoin token of the Terra blockchain, whose duty was to maintain its stability through an elastic money supply for the network. The token's revenues were used to reward investors and upgrade its blockchain.
It is important to note that TerraUSD was not pegged to the US dollar; instead, smart contract algorithms determined its price using the LUNA token.
In 2021, Terra activated a series of Colombus-5 main net upgrades to its system, which caused a spike in LUNA. Initially, LUNA was $1.31, but after the upgrade, it rose to an ATH of $49.95 and ended the year at $103.33.
The Colombus-5 update was to facilitate the movement of Terra stablecoins across blockchains faster and quicker. Terra achieved this by integrating with Cosmos, a network of multiple blockchains.
The update ensured that burned LUNA tokens would remain permanently burned and unusable, reducing the number of tokens in circulation and increasing their value.
