Loom Network
Crypto Overview
Project Overview
Loom Network is a Layer-2 scaling solution designed to enhance the performance of Ethereum-based applications, particularly focusing on gaming and social applications. The platform allows developers to run large-scale decentralized applications (dApps) with better user experience through faster and cheaper transactions.
Intended Utility
The LOOM token serves multiple purposes within the ecosystem: governance rights, staking for validation, and payment for transaction fees on the network. The platform specifically targets gaming and social media applications that require high transaction throughput.
Actual Utility and Usage
Current usage shows moderate adoption, with several gaming dApps deployed on the network. The platform has established partnerships with major blockchain projects and continues to maintain active development. Recent updates include cross-chain integrations and improvements to the network's security infrastructure.
Token Distribution and Governance
The token distribution shows a relatively balanced allocation, with approximately 35% reserved for the ecosystem and development, 25% for the team (with vesting schedules), and 40% distributed through public sales and mining rewards. The team has maintained consistent development efforts, prioritizing technical advancement over marketing activities.
Revenue Model
The platform generates revenue through transaction fees and validator staking, avoiding interest-based mechanisms. The business model focuses on providing infrastructure services rather than speculative financial products.
Crypto Impact
To assign a comfort level investing in Loom Network from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Loom Network.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
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