The same as 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 propose and validate blocks. This can be incentivized by an annual inflation rate of 7%, which goes to validators. Another option is https://financefeeds.com/mintos-expands-bond-offering-with-yields-of-up-to-14/