The Burn Exchange of LUNA Terra

LUNA is a is part of the Terra network, that is blockchain platform focused on creating stable coins for global payments. The concept of Terra was first introduced in 2018 by Daniel Shin and Do Kwon and in September 2019, the Terra network launched its main-net, with LUNA serving as the native token of the platform. Basically, LUNA is used to secure the network, facilitate transactions.

Since it's launch, LUNA has been significant growth in it's value and adaptation. in March, 2021 the price of LUNA boost to all time high of over $22, that is because of increase interest in the Terra platform and its stable coins. And in September, 2021 Luna is listed on number of cryptocurrency exchanges and has market capitalization of over $12 billion.

LUNC Terra
So here i'm going to define LUNC Terra, it is a decentralized digital currency that aims is to provide fast and secure transactions. LUNC Terra uses the Proof-of-Stake (PoS) consensus mechanism, which is a more energy-efficient alternative to the Proof-of-Work (PoW) mechanism used by many other cryptocurrencies, such as Bitcoin.
What is Block-time?
Basically in cryptocurrencies block time is the important factor to determine the speed of transactions on the network. The block time of LUNC Terra is only 2 minutes as compared to 10 minutes for Bitcoin, some newer cryptocurrencies, such as Litecoin, have a block time of 2.5 minutes which means that transactions are confirmed much faster. The Luna Terra ecosystem also includes a decentralized exchange (DEX), which allows users to trade LSTR and other cryptocurrencies without the need for a centralized intermediary.

What is Burn Exchange?
A burn exchange is the decentralized exchange that allows you to burn one cryptocurrency in exchange for another.
The Burn Exchange of LUNA Terra
In case of LUNA Terra, the Burn exchange allows you to swap LUNA for UST(Terra USD) and vise versa. The Integral part of the Terra ecosystem is the burn mechanism because it helps to stabilize the value of the stable coin UST, the primary currency used on Terra blockchain. The burn mechanism is implemented through a smart contract on the Terra blockchain, which automatically calculates the exchange rate based on the current price of UST and and the amount of LUNA being exchanged.

Conclusion
In this section, i'll tell you shortly that Burn exchange is powerful tool for maintaining stable coin stability on the Terra blockchain because it allows you to burns LUNA in exchange of UST, secondly to stabilize the price of LUNA and in the last to manage the risks of liquidation.