Terra, the top 15-ranked cryptocurrency in terms of market capitalization, plans to apply the Columbus 5 upgrade to its core net today. If everything goes according to plan, this new update will improve so that the Terra network is allowed to expand. Columbus 5 will change how the network will also bring integration and faster transactions with Mint UST (Terraced), the main stable coin of the blockchain, and other chains.
Columbus 5 will go live today
Terra, a smart contract-capable cryptocurrency chain Ready New Columbus 5 Mainnet upgrade to apply today. This will bring important updates to the network that could pave the way for future growth. However, the upgrade procedure is nothing more than simple: the old Mainnet, Columbus 4, needs to be completely shut down to replace the new one. The Terra team estimates this upgrade will take two hours.
Network upgrades will make a fundamental difference in how UST is minted. Before the UST stabilized coins, users had to pay a fee called seigniorage, which was redistributed to the community. With the Columbus 5 change, this signage will burn all, adding a lack of LUNA tokens. For this reason, the update is referred to as one of a kind EIP-1559 for Terra.
In addition, the update brings IBC support, which allows Terra to communicate with other networks such as Solana and Polkdot. This will allow the movement of resources within these networks, potentially increasing the presence of terra-based resources in other chains.
Terra USD expansion is the goal
Terra developers and proponents hope that these new improvements will allow UST, the system’s local stable coins, to become de facto decentralized stable coins in various blockchains. At the same time, it is thought that this UST recognition will generate appreciation for the Terra regime and the value of the Minting Token, Luna (LUNA). That’s why a new bridge called Wormhole, which will provide easy access to Solana’s UST Stablecoin, will debut in this upgrade.
The Terra ecosystem, though young, has impacted the cryptocurrency market. Although the UST is not yet listed as the largest exchange, it has reached a market cap of 2.6 billion, making it the fifth largest stable coin by market cap. Luna has also grown exponentially, growing by more than 10,000% in one year.
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