Terra [LUNA] will upload a massive Columbus-5 update in September
The Terra [LUNA] cryptocurrency team has announced a major update to its network. It will be called Columbus-5 and, according to the community, should be what EIP-1559 has become for Ethereum [ETH]. With it, a new token economy and deflationary instruments will appear on the network.
Columbus-5 postponed to the end of September
The Terra community has been waiting for Columbus-5 to download for a long time. It is the largest update since the launch of the network. It plans changes in terms of simplifying tokenomics, accelerating exchanges and the mechanics of attracting new projects and development teams. In its blog, Terra promises that the demand for its stablecoins will be greater than ever. First of all, the burning of tokens will increase in Terra. Terra is created to issue decentralized stablecoins, and Luna tokens are burned for their release. These tokens are called “seigniorage”. Part of the tokens has not yet been burned, but was sent to the reserves of the project, and then went to the rewards of oracles. After the update, all dedicated tokens will be burned. This should put positive pressure on the cryptocurrency rate.
The second element of the update is the integration of the capabilities of the Inter Blockchain Communication (IBC) protocol. It is designed to connect networks to each other, Solana [SOL], Polkadot [DOT], Cosmos [ATOM]work with it. It is expected that this could launch many new uses for Terra USD [TUSD]. Additionally, Terra will connect to the Wormhole “bridge” that will connect it to the Solana ecosystem. Transferring UST and other stablecoins to Solana will be easier and faster. It can be used in promising stablecoin exchange protocols that work on the basis of Solana.
With the update, Ozone insurance technologies will appear in the Terra network. When it is launched, a large number of UST stablecoin coins will leave the market for reserve funds to cover possible damage. The press release of the update says that risk insurance is something that is critically lacking in the modern blockchain industry.
Columbus moved for better preparation
Initially, the Columbus-5 update was scheduled for early September. But for many terra-based projects, this gave a limited time to prepare. Later, to make the transition more comfortable, the update was postponed to the end of the month.
For a more comfortable transition, developers will release more documentation and educational materials. Also in this documentation it is planned to “dispel some of the doubts of the community” about the update. Many doubted that the update was necessary and would benefit the Terra network.
Quotes Terra [LUNA] over the past 30 days increased by 260%. This is happening against the backdrop of the growth of the rest of the cryptocurrency market. The impact is also exerted by the newly increased prices of transactions in Ethereum. The commission for them exceeded $ 10. Back in early August, they cost less than $3. This makes financial networks like Terra attractive. The transaction fee in it is near-zero.