Active set
Top validators that participate in consensus and earn rewards. If more than the configured maximum of validators want to join the active set, the validator with the lowest self-bond is removed from the active set.
Airdrops
Additional rewards given to delegators through specific validators, separate from staking rewards. Terra ecosystem protocols may distribute airdrops to boost visibility. Claim them via the protocol’s website.
Algorithmic stablecoin
Crypto asset that tracks another asset’s price via software rules instead of collateral.
Arbitrage
Profiting from price differences across markets. Traders buy in one market and sell in another at a higher price.
Blockchain
Immutable ledger of transactions replicated across a network of independent computers.
Blocks
Grouped transactions stored on the blockchain. Validators batch, verify, and sign blocks.
bLUNA
Legacy token representing bonded LUNA used historically on protocols like Anchor and Mirror. Bonded positions took 21 days to unbond.
Bonded validator
Validator in the active set participating in consensus and earning rewards.
Bonding
Delegating or staking LUNC to a validator to receive rewards. Validators never take custody of delegator funds.
Burn
Permanent destruction of tokens. Terra protocol historically burned LUNC to mint stablecoins, and vice versa.
CHAI
Korean mobile payments app powered by Terra’s blockchain.
Columbus-5
Current Terra Classic mainnet version.
Commission
Validator’s share of staking rewards retained before distributing the remainder to delegators.
Community pool
On-chain fund accessible via governance proposals for ecosystem projects.
Consensus
Process by which validators agree that each block of transactions is valid. Terra uses Tendermint consensus. See the official Tendermint docs.
Cosmos SDK
Open-source framework used to build Terra’s blockchain. See the Cosmos SDK docs.
dApp
Application built on a decentralized platform.
DDoS
Distributed denial of service attack that floods a network with requests to disrupt service.
DeFi
Decentralized finance—financial applications operating without traditional intermediaries.
Delegate
Action of bonding LUNC to a validator to earn rewards.
Delegator
Account that bonds or stakes LUNC to a validator and earns rewards.
Epoch
Time window measured in blocks. Governance epochs last 100,800 blocks (~7.7 days at 6.6 s block time).
Fees
- Gas: Compute fee added to every transaction to prevent spam. Validators set minimum gas prices.
- Spread fee: Historical fee on Terra↔LUNC swaps.
- Tobin tax: Historical fee on Terra stablecoin swaps.
Refer to the fees guide.
Fiat currency
Government-issued currency not backed by another asset (e.g., USD).
Full node
Server that validates and broadcasts transactions on the Terra mainnet. All validators run full nodes.
LUNC
Terra Classic staking/governance token. On-chain micro-denom remains ulunaCopy uluna.
Governance
On-chain process allowing stakers to update the protocol via proposals and voting.
Governance proposal
Formal request for a protocol change. Types include parameter changes, community pool spends, and text proposals.
IBC
Inter-Blockchain Communication protocol enabling cross-chain asset transfers.
Inactive set
Validators outside the active set. They neither sign blocks nor earn rewards.
Jailed
Status applied to misbehaving validators. Jailed validators leave the active set until unjailed.
Market swap
Terra Station action routing through the market module to swap between Terra stablecoins or Terra and LUNC. Incurs gas plus Tobin or spread fees when enabled.
Examples
- Swapping UST for KRT charged gas and Tobin tax.
- Swapping LUNC for UST charged gas and spread fee.
Mint
Creation of new tokens. Opposite of burn.
Miss
Consensus vote that fails to be included in a block.
Module
Logical component of Terra Core implementing a specific feature.
Oracle
Module that aggregates exchange-rate votes from validators. Drives pricing for stablecoin mechanisms.
Peg
Fixed exchange ratio between an asset and its reference value (e.g., 1 UST ↔ 1 USD historically).
Pools
Token groupings used in swap or liquidity mechanics.
Proof of Stake
Consensus model where validators are selected to propose blocks based on staked tokens.
Quorum
Minimum participation (40% of staked LUNC) required for a governance vote to be valid.
Redelegate
Move bonded LUNC from one validator to another instantly, subject to a 21-day cooldown between the same source and destination validators.
Rewards
Staking income (gas, taxes, historical swap fees) distributed to validators and delegators.
SDR
IMF Special Drawing Rights. Terra historically used TerraSDR as its reference unit.
Seigniorage
Value captured when minting currency. On Classic, all seigniorage is burned.
Self-delegation
LUNC that a validator stakes to itself.
Slashing
Penalty applied to validators for misbehaviour (double-signing, downtime, oracle faults).
Slippage
Difference between expected and executed trade price.
Stake
Total LUNC bonded to a validator.
Staking
Bonding LUNC to a validator to secure the network and earn rewards.
Tendermint consensus
Two-round voting process securing Terra Classic. Validators propose, vote, and commit blocks via Tendermint.
Terra Classic Core
Golang reference implementation of the Terra Classic protocol.
Terra Classic mainnet
Live network where all Terra Classic transactions occur.
Terra Classic stablecoins
Stable assets that historically tracked fiat currencies via algorithmic supply changes. Names mirror underlying currency codes (e.g., TerraUSD USTCopy UST, TerraKRW KRTCopy KRT).
terradCopy terrad
CLI for interacting with a Terra node.
terravaloperCopy terravaloper address
Validator operator address starting with terravaloperCopy terravaloper.
Testnet
Non-production network (rebel-2Copy rebel-2) used for testing and dry runs.
Terra ecosystem
Network of dApps built on Terra Classic.
Terra protocol
Open-source blockchain for algorithmic stablecoins.
Tobin tax
Historical fee on Terra stablecoin swaps (rates available via oracle LCD). Disabled on Classic.
Tombstone
State applied to validators that double-sign. Tombstoned validators cannot rejoin consensus.
Total stake
Aggregate LUNC bonded to a validator, including self-bond.
Unbonded validator
Validator outside the active set and not participating in consensus.
Unbonding validator
Validator transitioning out of the active set; does not sign blocks or earn rewards.
Unbonded LUNC
Liquid LUNC not currently staked.
Unbonding
Process of unstaking LUNC. Takes 21 days with no rewards accrued.
Unbonding LUNC
LUNC currently in the unbonding period and not transferable.
Undelegate
Action to start unbonding LUNC from a validator (21-day wait).
Uptime
Percentage of time a validator is online and signing blocks. Low uptime risks slashing.
Validator
Node operator verifying transactions, participating in consensus, and voting in governance. Top 130 by stake form the active set.
Weight
Validator’s total stake, used for block proposer selection and governance voting power.