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 de-pegging 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 de-pegging event.