Identical to its predecessor, Terra is powered by Tendermint proof-of-stake. Validators stake their LUNA tokens as collateral and earn rewards proportional to their stake when they propose and validate blocks. This can be incentivized by an annual inflation rate of 7%, which goes to validators. Element of what will https://financefeeds.com/new-defi-altcoin-with-real-world-utilities-turning-500-investment-into-50000/