Terra Classic is an algorithmic stablecoin platform that operates on a blockchain infrastructure with a Proof of Stake (PoS) consensus mechanism built using Tendermint. It is home to the algorithmic stablecoin TerraClassicUSD (USTC).

After the depegging of USTC in May 2022, the community behind Terra Classic decided to create a new blockchain without algorithmic stablecoins called Terra 2.0. New LUNA tokens were distributed to the old users who were affected by the depegging event.