The Split of the Terra Ecosystem and the Evolution of the LUNA Token
In May 2022, the Terra ecosystem experienced the de-pegging of its core stablecoin UST and the dramatic collapse of the LUNA token, an event that had a profound impact on the crypto market. In response to the crisis, the Terra community voted to approve a revival plan, leading to a hard fork of the Terra blockchain and the formation of two independent chains and tokens: the original Terra Classic (token LUNC) and the new Terra 2.0 (token LUNA). Understanding the initial issuance price and total supply of these two tokens requires examining their respective backgrounds and mechanisms.
Issuance and Supply of Terra Classic (LUNC)
The original LUNA token, now known as Terra Classic (LUNC), has undergone significant changes in its issuance and supply.
- Issuance Price: According to public information, Terraform Labs conducted a private sale in May 2018, successfully raising $10 million, with the price of LUNA at approximately $0.1 per token. This represents the early acquisition cost of the original LUNA.
- Total Supply: Initially, the total supply of LUNA was set at 1 billion tokens. The Terra protocol was designed with a burn mechanism to burn tokens when the supply exceeded 1 billion, thereby maintaining market circulation. However, after the UST de-pegging event in May 2022, the supply of LUNC tokens dramatically inflated, increasing from approximately 300 million to trillions within a few days. As of October 2026, the total supply of LUNC is approximately 6.45 trillion, with a circulating supply of approximately 5.5 trillion.
Issuance and Supply of Terra 2.0 (LUNA)
The new LUNA token, the token of Terra 2.0, is issued in a manner distinctly different from the original LUNA.
- Issuance Price: The new LUNA tokens were not sold at a specific "issuance price" through traditional methods such as Initial Coin Offerings (ICOs) or private sales. They were distributed via airdrop to eligible holders of original LUNA and UST before the UST de-pegging event, according to Terra 2.0's revival plan. Therefore, there is no single, unified initial issuance price.
- Total Supply: According to Terra 2.0's revival plan, the active circulating supply of new LUNA tokens was reset to 1 billion. As of October 2026, the circulating supply of new LUNA is approximately 709 million to 745 million. The total supply is approximately 745 million to 1.19 billion, although some information suggests there might not be a clear maximum supply limit.
Impact of the LUNA Collapse and Regulatory Scrutiny
The LUNA/UST collapse had a massive impact on the cryptocurrency market, causing significant losses for a large number of investors. This event also drew the attention of global regulatory bodies to stablecoins and the broader crypto asset market.
- Investor Losses: Many investors suffered heavy losses due to LUNA's crash, highlighting the inherent risks of crypto asset investments.
- Regulatory Response: Following the LUNA collapse, officials such as U.S. Treasury Secretary Janet Yellen publicly stated the need for stronger regulation of stablecoins. The European Commission also considered imposing stricter restrictions on stablecoin usage to protect consumers and financial stability.
- Industry Reflection: Industry leaders, including Binance CEO Changpeng Zhao, have also commented on the LUNA crash, emphasizing the importance for investors to manage their own risks.
Ways to Acquire LUNA and LUNC Tokens
For LUNC tokens, due to their historical background and massive supply, market trading activity is relatively high, but the risks are also higher. For new LUNA tokens, as the core asset of the Terra 2.0 ecosystem, trading activity is also high. Investors can trade these tokens on supporting exchanges; please verify their listing status and fully understand the associated risks before trading.
