Terra will apply Columbus 5 mainnet migration –

Terra, one of the top 15 cryptocurrencies by market cap, plans to apply the Columbus 5 upgrade to its mainnet today. If all goes according to plan, this new update will bring improvements to help the Terra network continue to grow. Columbus 5 will change the way the network shapes UST (terrausd), the blockchain's main stablecoin, and will also bring integration with other chains and faster transactions.

Columbus 5 goes live today

Terra, a smart contract enabled cryptocurrency chain, is ready to apply the new Columbus 5 mainnet upgrade today. This will bring important updates to the network that could pave the way for future growth. However, the upgrade process is anything but simple: the old mainnet, Columbus 4, must be stopped completely in order to be replaced by the new one. The Terra team estimates this upgrade will take two hours.

The network upgrade will bring fundamental changes to the minting of UST. To mint the UST stablecoin, users previously had to pay a fee called seigniorage, which was redistributed to the community. With the changes in Columbus 5, this seigniorage will be completely burned, further increasing the scarcity of the LUNA token. For this reason, the update was considered a type of EIP-1559 for Terra.

Additionally, the update brings IBC support, allowing Terra to communicate with other networks such as Solana and Polkadot. This will enable the movement of assets between these networks and potentially increase the presence of Terra-based assets on other chains.

Terra USD expansion is the goal

Terra developers and proponents expect that these new improvements will allow UST, the system's native stablecoin, to become the de facto decentralized stablecoin on multiple blockchains. At the same time, it is believed that this UST acceptance would create an appreciation of the value of Terra's governance and minting token Luna (LUNA). For this reason, this upgrade introduces a new bridge called Wormhole that provides easy access to the UST stablecoin on Solana.

The Terra ecosystem, although still young, has had an impact on the cryptocurrency market. Although UST is still not listed on some of the largest exchanges like Binance, it has a market cap of $2.6 billion fifth largest Stablecoin by market capitalization. Luna has also grown and experienced immensely growth of over 10,000% in one year.

What do you think of Terra and its Columbus 5 network upgrade? Tell us in the comments section below.

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