Binance backs with $ 32 million to the issuance of Unicorn's stablecoin
Announced on Tuesday, the founder of startup Unicorn, known as TMON, revealed that it has raised an initial round of $ 32 million to build a stablecoin called Terra, which will be differentiated by having an existing user base.
The Terra project is launched with a significant number of partners that already reach 40 million customers, which will form Terra Alliance, a group of e-commerce sites that are interested in incorporating stablecoin in their businesses, including Woowa Brothers, Qoo10, Carousell, Grapefruit and TIKI.
The stable price protocol of Terra will act as an economic digital payment system.
Danial Shin, creator of Terra, told CoinDesk that a significant portion of TMON's annual losses take the form of credit card fees. And he's sure other retailers experience the same thing.
That said, if companies like yours can drastically reduce transaction fees, you think you have a better chance against the giants of the industry.
For the new alliance of companies, "the commitment really is that they will work together in a more efficient form of payment, obviously using blockchain technology," he continued.
To do that, Terra's protocol uses two tokens: terra and luna.
Investors in the initial round bought chips from a group of 400 million moon tokens (a fixed supply of one billion moon tokens will be created) reserved for them.
These moon tokens work as a guarantee on the network. Your sale will provide an initial reserve that will help stabilize the price instead of fiat, as Tether does. The other token, terra, will act as the daily payment method that consumers will use when the protocol goes live. It will be issued as needed depending on the demand.
Then, each time a transaction occurs in the network, a small transaction fee will be paid to the owners of Luna.
Like other stablecoin projects, the oracles of the network will control supply and demand. As the use of terra grows, it will emit new tokens algorithmically.
The advantage for e-commerce consumers and merchants will be that these new issues will be used to provide discounts to people who use the encryption token. So, if the protocol has issued a new batch of terra, traders could offer consumers a 10 percent discount on purchases made with the token, that is, until the new supply runs out.
The protocol will be executed on an existing blockchain; Shin said either Ethereum, EOS, Orbs, the messaging giant Kakao's Ground X or the upcoming Upbit project, one of Korea's exchanges.
Source: CoinDesk
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