Infrastructure for decentralized money: Terra x Flux
Flux x Terra partnership announcement (learn more)
Terra wants their UST stablecoin and LUNA token to be censorship-resistant money.
They say it right in their whitepaper.
Now, they've announced a partnership with decentralized computing infrastructure DAO Flux to bring the $FLUX token & censorship-resistant infrastructure to the Terra ecosystem
This has major implications for crypto 👇🧵
TL;DR censorship-resistant money (what Terra envisions UST to be) needs censorship-resistant infrastructure ( the FLUX partnership can help) if it wants to be the backbone of a decentralized Web3.
Want more alpha? You'll have to read on 😂
We know Terra wants to be the decentralized place to transact in the digital economy - it's core to the strategy of making UST the cross-chain stablecoin of choice, and the only major algorithmic stablecoin.
Their team explains this right in the OG Terra whitepaper:
As the world starts to become more andmore decentralized, we see Terra being used as a dApp platform where price-stable token economies are built on Terra. Terra is looking to become the first usable currency and stability platform on the blockchain, unlocking the power of decentralization for mainstream users, merchants, and developers.
It's also why Terra founder Do Kwon and the team at the Luna Foundation Guard have sought to backstop the UST peg with Bitcoin - decentralized money with secure decentralized backing. Now, this new FLUX partnership is adding censorship-resistant infrastructure, another layer of projection that is crucial to alleviating potential single point of failure attacks.
By working with Flux, Terra is reducing a potential threat to their ecosystem: regulation.
How decentralized is a system really if a regulator can come in and simply turn it off? This partnership helps minimize regulatory risk and provides confidence for partners.
Other key things mentioned in the announcement? Flux explicitly calls out decentralized infra for key Terra apps - Anchor Protocol and Mirror Protocol.
This is very important since Anchor Protocol is 57.5% of Terra total value locked. It also indicates some potentially exciting implications for the Mirror.
What else?
The $Flux token is coming to Terra and they will bring Terra coins to Zelcore, which the Flux token natively runs on
Overall this plays into Terra strategy of partnerships that enable $UST so they can be the money providers for web3. More smart strategic alliances by Do and team.
I also think this gives further credence to Terra's great UI/UX experience: if it's running in a decentralized, secure, hard to distrust manner on top of their already best-in-class UI/UX, that's very bullish for adoption. Give people a great product and make it easy to use.
Plus for #LUNAtics (the term Terra community members use for one another) looking to learn more, they can check out the FluxOS Dashboard for more info on how Flux operates, network resources, node rewards, application deployments, and DAO governance.
Check out the Flux dashboard to see the operation of their decentralized network.
Flux is the biggest decentralised cloud computing network, and the only one with 100% of nodes run by community members. This is a perfect DAO alliance for Terra to achieve true decentralization, and an exciting opportunity to continue to grow the decentralized web.
Article based on my Twitter thread covering the Terra x Flux partnership announcement.
