Terra (LUNA) is a native token of the Terra blockchain. It is used to maintain a stable price of the protocol’s multiple stablecoins, including those pegged to the Mongolian tugrik, U.S. dollar, and South Korean won. For example, when there is an increase in demand for TerraUSD (UST), thus driving up the price, holders can burn their LUNA tokens to create new UST, stabilizing the market price of UST while also making a small profit for themselves. LUNA is also used as a governance token for Terra.

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