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Glossary

This glossary provides definitions of terms specific to the Terra Protocol.

Active set

The top 130 validators that participate in consensus, receive rewards, and secure the blockchain.

Blockchain

An unchangeable ledger of transactions copied among a network of independent computer systems.

Blocks

Groups of information stored on a blockchain. Each block contains transactions that are grouped, verified, and signed by validators.

Bonded validator

A validator in the active set participating in consensus. Bonded validators earn rewards.

Bonding

When a user delegates or bonds Luna to a validator to receive staking rewards. Validators never have ownership of a delegator's Luna, even when bonded. Delegating, bonding, and staking generally refer to the same process.

Commission

The percentage of staking rewards a validator keeps before distributing the rest of the rewards to delegators. Commission is a validator’s income. Validators set their own commission rates.

Community pool

A special fund designated for funding community projects. Any community member can create a governance proposal to spend the tokens in the community pool. If the proposal passes, the funds are spent as specified in the proposal.

Consensus

A system used by validators or miners to agree that each block of transactions in a blockchain is correct. The Terra blockchain uses the Tendermint consensus. Validators earn rewards for participating in consensus. Visit the Tendermint official documentation site for more information.

Cosmos-SDK

The open-source framework the Terra blockchain is built on. For more information, check out the Cosmos SDK Documentation.

dApp

An application built on a decentralized platform.

DDoS

Distributed denial of service attack. When an attacker floods a network with traffic or requests in order to disrupt service.

DeFi

Decentralized finance. A movement away from traditional finance and toward systems that do not require financial intermediaries.

Delegate

When users or delegators add their Luna to a validator's stake in exchange for rewards. Delegated Luna is bonded to a validator. Validators never have ownership of a delegator's Luna. Delegating, bonding, and staking generally refer to the same process.

Delegator

A user who delegates, bonds, or stakes Luna to a validator to earn rewards. Delegating, bonding, and staking generally refer to the same process.

Fees

  • Gas: Compute fees added on to all transactions to avoid spamming. Validators set minimum gas prices and reject transactions that have applied gas prices below this threshold.

For more information on fees, visit Fees on Terra.

Full node

A computer connected to the Terra mainnet that is able to validate transactions and interact with the Terra blockchain. All active validators run full nodes.

Governance

Governance is the democratic process that allows users and validators to make changes to the Terra protocol. Community members submit, vote, and implement proposals. One staked Luna is equal to one vote.

Governance proposal

A written submission for a change or addition to the Terra blockchain. Topics of proposals can vary from community pool spending, software changes, or parameter changes.

IBC

Inter-Blockchain Communication. The technology that enables different blockchains to interact with each other. IBC allows for assets to be traded and transacted across different blockchains.

Inactive set

Validators that are not in the active set. These validators do not participate in consensus and do not earn rewards.

Jailed

Validators who misbehave are jailed or excluded from the active set for a period of time.

Luna

The native staking token of the Terra protocol. Luna is also used as a governance token. Delegators can stake Luna to receive rewards.

Miss

When a vote fails to be included in consensus.

Module

A section of the Terra Core that represents a particular function of the Terra protocol. Visit the Terra Core module specifications for more information.

Phoenix-1

The latest version of the Terra mainnet.

Pools

Groups of tokens. Supply pools represent the total supply of tokens in a market.

Proof of Stake

A blockchain consensus mechanism where validators are chosen to confirm blocks at a rate proportional to their stake. The Tendermint Concensus outlines the proof-of-stake procedure utilized by Terra.

Quorum

The minimum amount of votes needed to make an election viable. 40% of all staked Luna must vote to meet quorum. If quorum is not met before the voting period ends, the proposal fails, and the proposer's deposit is burned.

Redelegate

When a delegator wants to transfer their bonded luna to a different validator. Redelegating Luna is instant and does not require a 21-day unbonding period.

Rewards

Revenue generated from fees given to validators and disbursed to delegators.

Self-delegation

The amount of Luna a validator bonds to themselves. Also referred to as self-bonding.

Slashing

Punishment for validators that misbehave. Validators lose part of their stake when they get slashed.

For more information, see slashing in the description of the Terra protocol.

Slippage

The difference in a coin's price between the start and end of a transaction.

Stake

The amount of Luna bonded to a validator.

Staking

When a user delegates or bonds their Luna to an active validator to receive rewards. Bonded Luna adds to a validator's stake. Validators provide their stakes as collateral to participate in the consensus process. Validators with larger stakes are chosen to participate more often. Validators receive staking rewards for their participation. A validator's stake can be slashed if the validator misbehaves. Validators never have ownership of a delegator's Luna, even when staked.

For more information on staking, visit the concepts page.

Tendermint consensus

The proof-of-stake consensus procedure utilized by the Terra protocol. When a validator proposes a new block, the remaining validators then vote on the block in two voting rounds. If a block receives a two-thirds or greater majority of yes votes in both rounds, it gets added to the blockchain. All validators get rewarded with the block's transaction fees, however, the initial proposer of the block will receive a slightly higher reward. For each new block, a validator is selected to propose based on their weight. Check out the Tendermint official documentation for more information.

Terra Core

The official source code for the Terra protocol.

For more information on the Terra Core, see Terra Core modules.

Terra mainnet

The Terra protocol's blockchain network where all transactions take place.

Terra Station

Terra's native wallet and platform for swaps, governance, and staking. In Station, you can send, receive, and stake Terra tokens. You can also participate in governance and vote on proposals.

To learn how to install and get started using Terra Station, visit the Terra Station tutorial.

To learn how to use the advanced features of Terra Station, visit the Terra Station how-to guide.

Terrad

The command line interface for interacting with a Terra node.

For more information on Terrad, see the Terrad guides.

Terravaloper address

A validator's public address beginning with terravaloper followed by a string of characters.

Testnet

A copy of the mainnet network used for testing. The testnet does not use real tokens. You can use the testnet to get familiar with carrying out transactions on Terra. The current testnet for Terra is pisco-1.

The Terra ecosystem

A quickly expanding network of decentralized applications built on the Terra protocol.

Tombstone

A tombstoned validator is blocked from participating in consensus and cannot rejoin the active set.

Total stake

The total amount of Luna bonded to a delegator, including self-bonded Luna.

Unbonded Luna

Luna that can be freely traded and is not staked to a validator.

Unbonded validator

A validator that is not in the active set and does not participate in consensus or receive rewards. Some unbonded validators may be jailed.

Unbonding

When a delegator decides to undelegate their Luna from a validator. This process takes 21 days. No rewards accrue during this period. This action cannot be stopped once executed.

Unbonding Luna

Luna that is transitioning from bonded to unbonded. Luna that is unbonding cannot be traded freely. The unbonding process takes 21 days. No rewards accrue during this period. This action cannot be stopped once executed.

Unbonding validator

A validator transitioning from the active set to the inactive set. An unbonding validator does not participate in consensus or earn rewards. The unbonding process takes 21 days.

Undelegate

When a delegator no longer wants to have their Luna bonded to a validator. This process takes 21 days. No rewards accrue during this period. This action cannot be stopped once executed.

Uptime

The amount of time a validator is active in a given timeframe. Validators with low uptime may be slashed.

Validator

A Terra blockchain miner responsible for verifying transactions on the blockchain. Validators run programs called full nodes that allow them to participate in consensus, verify blocks, participate in governance, and receive rewards. The top 130 validators with the highest total stake can participate in consensus.

For more information on validators, visit the concepts page.

Weight

The measure of a validator's total stake. Validators with higher weights get selected more often to propose blocks. A validator's weight is also a measure of their voting power in governance.