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Terra is a massive, functioning world loosely based on the world of My Little Pony: Friendship is Magic. However, it is slowly being converted to a fully original creation, as even canon characters that are utilized within it (Celestia, Spitfire, etc.) have been reworked from the ground up, given a personality at all, or their story and circumstances changed drastically. In other words, Terra is a massive, completely reimagined AU.