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lilian

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Tutorial: Understanding the Terra Classic Node & Staking Environment

Beyond the headlines, the Terra Classic (LUNC) blockchain is a functioning, community-operated network. For developers and infrastructure enthusiasts, it presents a unique case study. Let's look at the technical components of running a Node and participating in its current ecosystem.

The Role of a Terra Classic Validator
A validator node is the backbone of the network. It runs the full node software (terrad), validates transactions, and commits new blocks to the blockchain. Given the chain's history, running a validator is a significant contribution to its continued existence.

The Staking and Delegation System
The network operates on a Proof-of-Stake consensus mechanism.

Staking LUNC: LUNC holders do not run nodes themselves but delegate their tokens to a validator. This process is known as Staking.

Voting Power: A validator's weight in consensus (and its chance to produce a block) is proportional to the total amount of LUNC staked to it.

Earning Rewards: Validators and their delegators earn Rewards from two primary sources: gas fees from transactions and a portion of the on-chain tax burn that is allocated to the staking pool.

Key Protocol Feature: The Tax Burn
The most significant feature of the current Terra Classic Protocol is the on-chain tax. A small percentage of every on-chain transaction (excluding staking operations) is automatically sent to a burn address. This parameter is controlled by community governance. For a developer building on Terra Classic, understanding the impact of this tax on transaction costs is crucial.

bash

Example of a CLI command to query the current tax rate

terrad query treasury tax-rate
Running a node or staking on Terra Classic is less about immediate profit and more about participating in a large-scale experiment in decentralized recovery. For the exact technical specifications and setup instructions, the official community documentation is the definitive Guide.

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