Identical To its predecessor, Terra is powered by Tendermint evidence-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 seven%, which goes to validators. Luna Basis Guard (LFG) https://financefeeds.com/2025s-best-cryptos-to-invest-in-why-qubetics-chainlink-and-polygon-are-set-to-explode/