Terra’s Columbus-5 Sets Sail, Here’s What To Expect

TERRA LUNA CRYPTOCURRENCY. BITCOIN COIN GROWTH CHART ON THE EXCHANGE, CHART; SOURCE: SHUTTERSTOCK

Read the full article by Sam Martin here

The highly anticipated Columbus-5 upgrade brings the UST stablecoin into the Cosmos ecosystem and could impact prices of $SOL, $DOT and $ATOM.

• Terra’s inter-blockchain communication (IBC) integration is expected to increase the adoption of its stablecoin, TerraUSD (UST), throughout the Cosmos ecosystem

• Upgrades include increased transaction speed and rewards for stakers, adjustments to burning mechanisms, and a bridge for UST between Terra and Solana

  The Columbus-5 update was a success and marks a key point in Terra Luna’s history. The upgrade includes a numerous amount of changes, starting with chief, the adoption of the inter-blockchain communication(IBC) connecting assets based on Terra to the Cosmos protocol.

  The bridge will create a pathway for the Cosmos, Terra, Solana and Polkadot blockchains. With a bridge for the Ethereum ecosystem coming soon.

  Terra hopes to help blockchains with a lack of demand for blockchains that lack a USD-pegged stablecoin. The Cosmos hub, who helps connect more than 10 different blockchains through the IBC system does not have a USD-Pegged stablecoin.
  ”Prior to Columbus-5, a large portion of burned $LUNA would be rerouted to a community pool and the remainder would be burned. After Columbus-5, the community pool portion will be entirely burned as well, thus reducing the total supply.”

  “TerraUSD, as an algorithmic stablecoin, isn’t backed by anything. Its stability is a function of the supply, demand and arbitrage. These types of stablecoins are experimental and highly controversial. If any of these stability factors cease to exist, the value of $UST and $LUNA could quickly deteriorate.”

  Depending on how harshly the acting SEC chair Gary Gensler is on stablecoins, that can dictate how safe of an investment Terra($LUNA) actually is.