The same as 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. If you should https://financefeeds.com/elon-musks-x-money-a-disruptive-force-in-copyright-or-another-speculative-experiment/