WLUNA Project Introduction

Wrapped LUNA Classic (WLUNA) is an ERC-20 token based on Ethereum, aiming to provide users with the opportunity to peg the value of the native LUNA token in the Terra ecosystem at a 1:1 ratio. The main difference between these two assets is that they exist on two different blockchains: Wrapped Luna is a derivative token on the Ethereum network, while Terra Luna is the native platform token on the Terra network. The launch of WLUNA is intended to help users more conveniently utilize the value of LUNA in the Ethereum ecosystem, thereby enhancing the liquidity of the LUNA token.

Original WLUNA token symbol (Image source:https://www.youtube.com/watch?v=mmUAlqMcLxI)

In early May 2022, the Terra ecosystem experienced a systemic collapse due to the UST stablecoin’s unpegging, resulting in a sharp drop in the native token LUNA’s price and a significant shrinkage of ecosystem assets. To rescue the Terra ecosystem, the project team implemented a chain fork on May 28, 2022, aiming to address the issues faced by the old version of the LUNA token and UST stablecoin. The specific measure was the launch of the LUNA 2.0 public chain network, with the old chain renamed as Terra Classic USD (USTC), and the upgraded on-chain token LUNA renamed as LUNC (i.e., LUNA Classic).

This major change directly affects the positioning and naming rules of the WLUNA token. After the fork, due to the change of the native token on the Terra chain to Luna Classic Token, its mapped version WLUNA on the Ethereum network was adjusted to WLUNC, supporting users to continue holding and trading LUNC in the Ethereum ecosystem, and used for compatibility with ERC-20 standard wallets and DeFi applications. It is worth noting that this hard fork and subsequent rebranding has caused widespread confusion in the crypto market. To this day, many trading platforms still use WLUNA as the token name.

Note: Evolutionary relationship in the Terra ecosystem

(Please note that the new chain LUNA (Terra 2.0) has not yet released a wrapped version, so there is no new WLUNA token in the market. When trading related tokens, please pay attention to the differences between Terra Classic and Terra 2.0 to avoid misunderstandings.)

Project Link:

Etherscan:https://etherscan.io/token/0xd

X (Twitter):https://x.com/terra_money

Telegram:https://t.me/terranetworklobby

Medium:https://medium.com/terra-money

Github:https://github.com/terra-money

Trading Entrance:https://buy.moonpay

WLUNA Token Information

Token Name: Wrapped LUNA Classic

Deployment time: July 25, 2019

Total Supply: 252.04 billion (mapped with LUNA token)

Token Type: ERC-20

Contract Address: 0xd2877702675e6cEb975b4A1dFf9fb7BAF4C91ea9

$WLUNA on-chain information (image source:Wrapped LUNC Token (LUNC) Token Tracker | Etherscan)

Key Features

The launch of Luna 2.0 aims to address the systemic flaws exposed in the old version of LUNA and the UST ecosystem. The core reason for the collapse of the old version of LUNA lies in the failure of the algorithm stabilizing the UST mechanism, leading to vicious inflation of LUNA, ultimately triggering a crisis of market trust and liquidity depletion. To restore ecosystem stability and rebuild market confidence, the Terra team has implemented a series of key optimization measures, mainly as follows:

1. Switch to single currency mode \
Luna 2.0 has abandoned the original Terra ecosystem’s ‘LUNA-UST’ dual coin mechanism and switched to a LUNA single coin mode, no longer relying on the algorithmic stablecoin UST. This adjustment aims to eliminate the systemic risks brought by the algorithmic stablecoin mechanism, ensuring a more robust token economic model for the new ecosystem.

2. Optimization of the supply mechanism \
Compared to the old version of the LUNA infinite supply inflation model, Luna 2.0 sets a maximum issuance limit of 1 billion tokens, increasing the long-term scarcity and value support of the tokens. This change enhances the supply and demand stability of the tokens, helping to restore market confidence in the LUNA ecosystem.

3. Community-driven Model \
Luna 2.0 relies on the strong LUNAtics community for continuous development, emphasizing decentralized governance. Community members play a core role in governance proposals, ecological support, protocol upgrades, etc., ensuring the sustainable development of the Terra ecosystem.

WLUNA Market Performance

The price trend of WLUNA is closely linked to the recovery process of the Terra Classic ecosystem. However, due to the controversy that the Terra ecosystem has encountered in the past few years, confidence in WLUNA remains unstable, and its price fluctuates dramatically, reflecting the sensitivity of market sentiment.

According to the data from CoinMarketCap in the past month, WLUNA has experienced significant fluctuations from mid-January to early February, and market sentiment becomes more active when price fluctuations are large, but the trading volume is generally limited. It is worth noting that each significant price change is often accompanied by rapid inflow and outflow of short-term funds. As of the time of writing on February 9th UTC+0, WLUNA’s latest price is 0.000033 US dollars.

01/09 - 02/09 period $WLUNA trend (Source: https://coinmarketcap.com/currencies/wrapped-luna-token)

WLUNA Latest Updates

Recently, the Terra (LUNA) blockchain completed the latest network upgrade and hard fork at block height 14,154,000. The corresponding chain ID for this upgrade is Phoenix-1, with the specific time being February 4, 2025, 05:40:37 (UTC +0). This upgrade not only reflects Terra team’s continuous efforts in optimizing on-chain infrastructure but also lays the foundation for enhancing network stability and ecological development potential.

As one of the important tokens in the Terra ecosystem, the market performance of WLUNA may be indirectly affected by this upgrade. It is recommended that users holding WLUNA and ecosystem developers closely monitor the network operation after the upgrade and update the nodes to the latest version (Block Version 11) in a timely manner to avoid service interruptions or asset management issues caused by version incompatibility, ensuring smooth operation of on-chain transactions.

Latest Terra blockchain upgrade information as of 2025/02/10 (Image Source:https://ping.pub/terra/block/14154000)

WLUNA Risk Warning

The Terra Classic ecosystem is still in a phase of recovery and adjustment. As the mapped version of the native token, WLUNA’s price fluctuations are easily influenced by market sentiment and short-term fund flows. Currently, the trading volume of WLUNA is relatively low, the market liquidity is insufficient, which increases the difficulty of buying and selling and the risk of slippage. It is recommended that potential participants fully understand the latest developments of the project, assess their own risk tolerance, and be vigilant against short-term speculative activities.

Conclusion

WLUNA, as an important part of the Terra ecosystem, has expanded the application scenarios and liquidity of LUNA Classic by extending to Ethereum. Despite the challenges posed by past market volatility, the efforts of the Terra team in infrastructure optimization and community building have laid the foundation for the long-term recovery of the ecosystem. For investors, WLUNA carries both opportunities and risks. Before participating, it is essential to have a deep understanding of the project background and market dynamics, make a rational assessment of risk and return, and ensure the formulation of a strategy that aligns with your investment goals.