Skip to content
Blockchain LabTHE VENTURE STUDIO

CanonTerra

Terra: paper, then practice.

Terra's paper holds a dollar token by expanding and contracting LUNA. In May 2022 that mechanism broke. The paper is a failure case.

Do Kwon. 2019. Status: Failure case. Last reviewed: 1 October 2026.

  1. The paper. Do Kwon's 2019 paper for a family of fiat-pegged tokens stabilised by an arbitrage relationship with a second, volatile token. It is included because it is a canonical design paper that was not in the historic library. It is included as a failure case, not as a model to ship.
  2. Peg.
  3. What changed.
  4. Two kinds of peg.
  5. When it is the wrong rail.

What this chain does not claim

It does not rank a network, quote a yield, or say the live client still matches the paper. The full study keeps the limits. Primary source: Terra research archive.

Open the study