Similar to 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 suggest and validate blocks. This is certainly incentivized by an annual inflation rate of 7%, which goes to validators. Luna Foundation Guard (LFG) https://financefeeds.com/global-fx-market-summary-us-dollar-weakness-global-economic-uncertainty-17-february-2025/