Blockchain.com bets on LUNA ecosystem, joins $150m Terra initiative fund
Blockchain.com, a full-stack crypto services platform has recently announced it jumped on board Terra’s $150 million Ecosystem Fund, established to act as a capital foundation for projects eager to build and develop applications, protocols, and tools on the growing network.
By doing so, the company has joined an all-star ensemble of investors, including Arrington Capital, BlockTower Capital, Galaxy Digital, Hashed, Lightspeed Ventures, Pantera Capital, Parafi, SkyVision Capital, and many others that have recognized Terra’s momentum.
In the past 30 days, LUNA, the native staking and governance asset of Terra, which is largely used for stabilizing the price of the protocol’s stablecoins and for incentivizing the platform’s validators, rallied 219.73%
Making moves with an investment in LUNA
In June 2021, Blockchain.com’s venture capital fund invested in Terra’s native token LUNA and is now running a new validator node for the network.
Pleased to welcome @blockchain to the Terra Ecosystem Fund!https://t.co/TY6IFyJKPZ's Venture team has also invested in $LUNA and is now running their own validator node on the Terra network.Big addition to the #LUNAtic fam 🙂 https://t.co/PR2Lh7jDNP— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) August 30, 2021
Meanwhile, the decentralized blockchain platform that deploys a suite of algorithmic, fiat-pegged stablecoins is on the verge of the most important upgrade, dubbed Columbus-5, which will usher in the cross-chain integration, expected to further entice a myriad of protocols and dapps.
1/ The on-chain proposal to migrate the Terra network to the Columbus-5 mainnet has officially passed, with 99.99% of votes signaling "Yes." https://t.co/22CS19RbLV— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) August 25, 2021
The Columbus-5 mainnet upgrade is also set to simplify the ecosystem’s tokenomics via burning seigniorage that will make the protocol’s native stablecoin, TerraUSD (UST), swapping more efficient and further benefit LUNA stakers, which are on the swap fees receiving end.
Increasing demand for Terra’s stablecoins
The growing demand for the protocol’s stablecoins, such as TerraUSD (UST) and TerraKRW (KRT), is generated by the expanding use of products in Terra’s ecosystem, like Mirror that allows synthetic asset trading, or Anchor that enables high-yield savings.
With numerous projects lined up to launch after the upgrade, the demand for Terra’s stablecoins is expected to explode and as more stablecoins are minted, more LUNA is burned, reducing fully-diluted supply.
SHORTLY after Col-5 in 14 days, projects like:@mars_protocol @astroport_fi @nebula_protocol @kado_money @SuberraProtocol @AndromedaProt @ProtocolTalis @valkyrie_money @Levana_protocol @spar_protocol @prism_protocolAnd $UST as operating ccy on Cosmos w/ IBC & beyond pic.twitter.com/lNaucOjF6M— SJ Park 🌖 (@sjpark_TFL) August 26, 2021
“Terra has proven itself in payments via its stablecoin-powered Chai payments app, which now has millions of users. They’ve built key financial primitives such as Anchor & Mirror. The ecosystem has evolved to become a fully-fledged, permissionless layer-1 with a burgeoning 3rd party developer ecosystem,” said Samuel Harrison, a managing partner at Blockchain.com Ventures.Source