Terra and Proof that End User Adoption is Possible

At Figment our mission is to support the wider adoption, growth, and long term success of the Web 3 ecosystem. Everyone within the Web 3 ecosystem has a role to play regarding adoption. We do our part by making Web 3 protocols more accessible through our staking and node services, and through Hubble, our Web 3 Explorer. Web 3 adoption comes in many forms, but one protocol that has been excelling in end user adoption is Terra

Terra is (somewhat secretly) one of the fastest growing blockchains in terms of end user adoption. Its payment application, CHAI, has now reached over 1.4 million users-- within the first four months of launch, CHAI had a growth rate of 16.1% week over week with over 400,000 users completing at least one transaction. Currently, CHAI is the most used blockchain-based application in the world if measured by daily active users, and Terra has more daily active users than Ethereum.

terra adoption

Since its launch, Terra has gained over 1.4 million users. Terra currently has an expected annual run rate of over $1 billion. While many Web 3 protocols rely on inflationary rewards to incentivize their stakeholders, Terra rewards come entirely from transaction fees. In fact, Terra has earned more transaction fees than any other layer one blockchain besides Ethereum and Bitcoin this year.

terra adoption

What’s Terra’s secret? 

Terra has held up to its promise of offering merchants and users lower fees, near-instant settlements, and discounts with their retail partners, while providing a familiar and frictionless user experience via CHAI. 

  • Lower Fees - Most traditional payment systems charge around a 3% fee for all transactions they process. Terra charges 0.5% - 1.3%, which can mean hundreds of millions of dollars in annual savings for large retail companies.
  • Instant Settlements - It normally takes around 3 - 14 days for a transaction to fully complete using traditional payment systems. With Terra, it takes 6 seconds.
  • Discounts - Terra’s algorithmic monetary policy allows Terra to offer ongoing discounts for its users. 
  • User Experience - Terra’s payment application CHAI has the same look and feel as a traditional payment application and onboarding is simple. Users simply have to link their bank account to the app. Users do not have to remember private keys and they are able to use stablecoins that are pegged to traditional currencies they are already familiar with. 

What can we learn from Terra? 

Terra’s focus on growth has put blockchain technology into more end user pockets than any other blockchain company. They saw a real world problem and applied a blockchain solution. What they didn’t do is try to convert their users into “crypto users”. Users of CHAI and Terra reap all the benefits of the underlying blockchain technology without being directly exposed to the blockchain layer. By going to where their users already are, traditional e-commerce marketplaces, Terra was able to acquire users at a much faster rate. 

“Our product philosophy is always to ask foundational questions on how financial technology can be structurally improved. In payments, our journey started by asking: "How can we make sure merchants are paid faster for lower fees?" In our new savings product, we are asking the question: "How can we find a source of APR in crypto that is higher and more stable than the federal funds rate?" It's easy to get tunnel vision in crypto and have a competition-based outlook on product development, e.g. how to be faster than Ethereum, how to implement x, y, z features, but ultimately the crypto industry will grow to value developers that take a user-first philosophy to their roadmap, and point to user metrics to prove their success.”

Do Kwon, Cofounder of Terra

The Web 3 ecosystem has the potential to dramatically change the way we interact, communicate, and exchange value with each other. That said, the “jump” between Web 2 and Web 3 is currently too far for most users of Web 2 technology. While many actors within the Web 3 ecosystem do a great job at explaining that the “jump” isn’t that far, Terra simply made the “jump” easier for Web 2 users, and we try to do the same at Figment. 

We have been an active supporter of the Terra network since launch, and we continue to make the network more accessible to token holders and the community of Terra validators through our infrastructure and Hubble, our Web 3 explorer. Terra has done an amazing job driving end user adoption and we look forward to seeing more growth in the Terra ecosystem. 

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