It's reasonable to assume rival entities have their eye on Terra 2, and would like to control it. But to do so they need to buy LUNA.
1/9 $LUNA at $8.50. Not too surprising.
LUNA is valuable because it controls the Terra 2 network via governance.
Governance in Terra 2 is actually democratic. No single entity owns a majority of the LUNA, so it makes sense to accumulate LUNA for governance. 🧵
It's reasonable to assume rival entities have their eye on Terra 2, and would like to control it. But to do so they need to buy LUNA.
Same with AVAX, SOL, etc. Those networks are not democratic. Voting is pointless, as supply is extremely concentrated in few hands.
For the first time ever on an alternative smart contract platform it makes sense for entities to accumulate the native asset for the purpose of governance.
What can you do if you control the network?
Pretty much all parameters are alterable.
It collects transaction fees, but those will probably always be negligible.
It gets a staking yield, by since that's inflationary it's better to view it as a dilution punishment for not staking rather than a reward for staking.
Remind you of anything? Curve Wars.
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