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What Does That Mean For Terra and Its Users
Transformations are on the horizon for the Terra blockchain—remarkable ones. Terra’s Twitter announces the forthcoming “most substantial mainnet upgrade.”
Before its imminent arrival later this week, let’s delve into the implications of the upcoming upgrade for Terra, #LUNAtics, other users, and affiliated protocols.
Columbus-5 — What Is It and What Will It Bring?
Columbus-5 introduces three pivotal transformations: an upgrade to Stargate and the integration of the IBC protocol, alongside the incorporation of Ozone and Wormhole, accompanied by the implementation of a new burn policy. These modifications collectively mold the landscape of the Terra ecosystem.
The ensuing ramifications of these alterations will deeply impact the Terra ecosystem, ushering in a substantial shift in its dynamics and functionalities.
Burn, Baby, Burn
The upgrade’s standout feature for numerous retail investors and speculators is the pivotal choice to burn all seigniorage. Previously, seigniorage, represented by burned LUNA used to mint UST, was directed to a community pool, accumulating excess funds for oracle rewards. Post-upgrade, this LUNA will be systematically burned, aiming to enhance the currency’s value and amplify rewards for LUNA stakers.
Upgrading to Stargate
A major transformation introduced by Columbus-5 is the adoption of Stargate, facilitating the incorporation of the Inter Blockchain Communication protocol (IBC). IBC supports a diverse range of interchain use cases, positioning UST as the primary stablecoin for networks like Cosmos. This expansion broadens Terra’s use case to encompass over 250 distinct decentralized applications (dApps).
Welcome, Ozone + Wormhole
Columbus-5 ushers in the introduction of Ozone and Wormhole. Ozone, a coverage protocol crafted by Terraform Labs, safeguards a substantial portion of UST, ensuring insurance for projects developed by TFL. Simultaneously, Wormhole serves as a bridge connecting Terra and Solana, facilitating the seamless transfer of UST between the two networks. This paves the way for enhanced integration and collaboration between projects on Terra and Solana.
How Will Columbus-5 Affect Users?
Foremost, it’s crucial for users to steer clear of Terra and its affiliated protocols and projects during the upcoming upgrade this week. Engaging in any transactions during this period could lead to permanent loss of funds.
What happens once the upgrade has been implemented?
With the introduction of Columbus-5, a multitude of new protocols and ongoing projects are set to launch this week. Upon the official deployment of the upgrade, over 50 protocols will become operational and available to users. These protocols will span a wide range of applications, encompassing existing features such as savings accounts and mirrored assets, as well as introducing new use cases like investment dashboards, NFT creation and sales, derivatives, and various other functionalities.
