Terra's Catastrophic Collapse: How LUNC Survived $40 Billion in Losses

The Terra ecosystem imploded in May 2022 when its algorithmic stablecoin lost its dollar peg, causing $40 billion in value to evaporate in under a week.

The original chain was preserved as Terra Luna Classic (LUNC) after a community vote, while a new chain called Terra 2.0 launched without the failed stablecoin model.

LUNC's community now runs a token burn mechanism and on-chain governance, though the project remains speculative and highly volatile.