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Terra (UST) Powered by Luna Expressed: Columbus-5 is now officially live as the new Terra mainnet. From the May crash to today, it’s been one helluva ride. The beginning of the new future of Terra is happening with the courtesy of Columbus-5.
Col-5 unlocks numerous dimensions for the Terra ecosystem to better capture value, port assets across IBC-enabled chains, and set the foundation for a vibrant TeFi economy.
Economic Changes: Columbus-5 simplifies the Treasury Module logic of the Terra protocol so that 100% of the LUNA seigniorage generated by the expansion of the UST supply is burned.
By closely tethering LUNA demand to UST demand, LUNA value capture becomes a function of UST’s adoption in a thriving cross-chain, Internet-native environment. As a result, more demand for UST shifts LUNA’s demand curve outward, while LUNA’s supply curve contracts.
Community Pool & Ozone: Since 100% of LUNA is burned in Columbus-5, no more seigniorage will be diverted to the community pool. Currently, the community pool contains roughly 98.675 million LUNA, equating to approximately $3.5 billion.
$1 billion from the community pool will be burned via the on-chain swap (LUNA → UST) to bootstrap Ozone. Ozone is an algorithmic, claims-based insurance protocol approaching launch on Terra.
Ozone is currently undergoing an audit and is expected to launch in mid-late October. Obviously, the LUNA price and amount in the community pool have changed significantly since the original proposal.
Plans for Ozone and the community pool will be clarified soon as Ozone finalizes its audit and prepares for launch. Please stay tuned for further updates.
IBC: IBC is a standardized communication protocol for blockchains that are IBC-compatible. The Cosmos SDK comes with IBC natively, which is disabled by default in Stargate (the latest major SDK upgrade) and needs to be manually initiated.
As a result, IBC functionality on Terra will go live following an on-chain governance vote now that Columbus-5 is live and stable.
Once the network is ready to unleash the gates of interoperability for UST and other Terra assets, a governance vote to manually initiate IBC on Terra will be published. More updates about the plans for the IBC governance proposal will be released soon.
Columbus-5 is the culmination of years of hard work and dedication by a thriving community of developers, users, partners, investors, and LUNAtics of all varieties. It’s a momentous step for the network and our community.
Columbus-5 is just the beginning. It lays the foundation for future waves of apps, protocols, builders, and users to onboard into the TeFi ecosystem — wielding the power of decentralized money that is more attractive to spend and hold than fiat incumbents.
