Podcast on Terra Blockchain with Do Kwon

Delving a bit deeper into Terra, compared to this basic video, here is a lengthy podcast from June 2021.

Note that the discussion starts with a lengthy contextual preamble and the interview with Do Kwon doesn't start until after 28 minutes.

Some highlights:

● The two different tokens that Terra offers and why they opted for this route.
● Use-cases for Terra; understanding the Mirror and Anchor applications.
● The growth policy laid out for Terra from the start and how it has worked in practice.
● Understanding the insurance and collateral aspects of the Terra blockchain.
● The emphasis that Terra has placed on interoperability since its inception.
● The principles of the CHAI payment network and how it fits with Terra.
● Competition in the stablecoin market and Terra’s biggest DeFi challengers.
● The probable future of Luna and looking at possible limitations.
● Anchor’s yields and putting these in context as the platforms scales. (More on this below)
● The under-the-radar status of Mirror right now, and changes with version two.
● The expansion of the Terra ecosystem and Do’s excitement about new applications.
● Do’s perspectives on the biggest threat to Terra’s longevity!
● Getting involved in the Terra community and how to pitch a product to build.

I find Kwon to be quite level-headed regarding the long-term structures of any crypto economy - compared to the feast-and-famine protocols that abound. Regarding Anchor's yields, all he does is aggregate yields from other sources. This is something anyone can do and what I've been doing for some 4 years - sadly at a smaller scale. But one thing I keep telling people (some even bother listening) is that, even with some clever mathematics, the yields that can be extracted from any one ecosystem are going to converge to some average value that the system can sustain.

At the time of the interview, Kwon said Anchor could yield a stable 20% APY. If you look at the website now, you can see this is down to 19.5%. Kwon said this would drift lower, and it has. Still miraculous compared to global banks, and more like managed funds (which kinda lurk in the background) but the point is that this value is more likely to drift downwards than upwards as more people converge to the most profitable sources.

This will happen on BLURT too as the vote yield will drift towards the minting rate - it all depends on growth.