LUNC, or Luna Classic, is the original native cryptocurrency of the Terra blockchain, rebranded after the dramatic collapse of its algorithmic stablecoin, TerraUSD (UST), in May 2022. Formerly known as LUNA, its primary function was to absorb price deviations of UST through a minting and burning mechanism.
Following the de-peg and hyperinflationary spiral, the community initiated a new chain (Terra 2.0 with LUNA) while the old chain became Terra Classic with LUNC. Despite its turbulent past, LUNC maintains a dedicated community that implements burn mechanisms (like a transaction tax) to reduce its massive supply and aims to rebuild utility through staking and governance within the Terra Classic ecosystem.