Identical To its predecessor, Terra is powered by Tendermint evidence-of-stake. Validators stake their LUNA tokens as collateral and earn rewards proportional for their stake when they propose and validate blocks. This can be incentivized by an annual inflation rate of 7%, which goes to validators. Luna Basis Guard (LFG) https://financefeeds.com/plus500-ends-2024-debt-free-with-3b-in-deposits-255k-clients/