Much like its predecessor, Terra is powered by Tendermint proof-of-stake. Validators stake their LUNA tokens as collateral and earn rewards proportional for their stake when they suggest and validate blocks. This can be incentivized by an annual inflation rate of seven%, which goes to validators. Luna Basis Guard (LFG) https://financefeeds.com/uk-fca-confiscates-over-6-5-million-from-insider-dealer-and-convicted-fraudster/