# Terra (LUNA): D-Score 45/100 — Moderately Decentralized

**BlockIndex D-Score: 45/100 (Moderately Decentralized).** Terra (LUNA) is a Layer 1 cryptocurrency using PoS consensus. Terra (LUNA): Community-driven Tendermint PoS Layer‑1 rebuilt after 2022 collapse with on‑chain governance and developer incentives.

_Source: https://blockindex.ai/coin/luna · Data by BlockIndex.AI · Updated 2026-06-19_

## D-Score breakdown (0-100, higher means more decentralized)
| Component | Score |
| --- | --- |
| Overall D-Score | 45 |
| Node distribution | 10 |
| Initial distribution | 0 |
| Governance | 20 |
| Age and history | 10 |
| Autonomy | 5 |

## Key facts
- Layer: Layer 1
- Consensus: PoS (Other)
- Launch: Airdrop (2019)
- Founder: Do Kwon, Daniel Shin
- VC funded: No
- Max supply: N/A
- Circulating: 709,984,439

## Market data (as of 2026-06-19)
- Price: $0.05
- Market cap: $36.39M
- 24h volume: $5.61M
- 24h change: -1.26% · 7d change: -0.17%

## About
Terra (LUNA) is a community-driven Layer-1 blockchain rooted in the Cosmos/Tendermint ecosystem that aims to provide fast, low-cost settlements and a platform for decentralized applications. The project originally launched its mainnet in April 2019, supported by Terraform Labs and led by founders Do Kwon and Daniel Shin. Terra gained significant traction through its integrated stablecoin strategy and payment-focused tooling, which spurred a vibrant ecosystem of DeFi applications and merchant integrations. Following the catastrophic depegging of the UST algorithmic stablecoin and the resulting collapse of the original LUNA token in May 2022, the community executed a controversial hard fork and reconstitution of the chain (commonly referred to as Terra 2.0). The relaunched LUNA is positioned as a native chain token for a rebuilt, community-owned Layer-1 that emphasizes on-chain governance, developer incentives, and ecosystem recovery.

Technically, Terra is built on the Tendermint consensus and Terra SDK stack and operates as an account-based Proof-of-Stake chain. The post-fork network retains many of the original architectural choices but explicitly removes the prior algorithmic stablecoin mechanism that precipitated the collapse. Validators secure the network through staking and on-chain governance, and a community-controlled pool and vesting schedules shape token distribution. While the chain offers interoperability primitives (IBC references appear in explorer data), operational telemetry from node and block trackers was incomplete in the supplied sources. The network’s incentive model includes inflationary staking rewards (noted in source material at roughly 7% annually) to secure the validator set and to encourage participation after the re-launch.

In terms of real-world use and adoption, Terra’s greatest historical strength was its payments and DeFi integrations anchored by algorithmic stablecoins and yield products. After the 2022 collapse, the ecosystem fractured and many applications migrated or were restructured, yet the post-fork LUNA retained listings on major centralized and decentralized exchanges and continues to be tracked on market analytics platforms. Tokenomics for Terra 2.0 were reworked via a structured genesis distribution and airdrop: sources reference an initial planned supply near 1 billion LUNA with circulating and total-supply snapshots varying across market feeds (CoinMarketCap excerpts in the provided files show circulating supply near 709.98M). Developer allocations, community pool allocations, and vesting schedules were explicitly documented in the redevelopment plan, and a set of developer-aligned allocations (summarized in the supplied distribution notes) account for a pre-issued percentage of the genesis supply.

Governance and organizational context remain central to assessing Terra’s trajectory. The post-fork governance model relies on token-holder voting and staking, with a community pool that funds ecosystem grants and initiatives under on-chain governance control. Historical corporate actors — principally Terraform Labs and named figures such as Do Kwon — figure heavily in Terra’s public narrative, and legal/ regulatory developments (including investigations and legal proceedings tied to Terra’s collapse) continue to influence market trust and institutional relationships. Moving forward, the chain’s priorities include rebuilding developer confidence, ensuring smooth migration paths for exchanges and custodians, and re-establishing robust transparency around operational telemetry (node counts, block explorers, and infrastructure integrations) to support renewed ecosystem growth.

## Links
- Website: https://terra.money/
- Whitepaper: N/A
- GitHub: N/A

---
About the D-Score: BlockIndex.AI rates decentralization from 0 to 100 across node distribution, initial distribution, governance, age and history, and autonomy. Methodology: https://blockindex.ai/dscore