Terra Ecosystem
Crypto Overview
Purpose and Utility Assessment
The Terra ecosystem was originally created as a blockchain platform for algorithmic stablecoins, most notably UST, which collapsed in May 2022. After the collapse, the ecosystem was relaunched as Terra 2.0, which focuses on being a Layer-1 blockchain platform for decentralized applications.
Business Model Evaluation
The current Terra 2.0 operates as a proof-of-stake blockchain platform where TERRA (formerly LUNA) serves as the governance and staking token. The platform aims to support decentralized applications and smart contracts. The underlying technology and business model do not inherently involve prohibited activities.
Real-World Adoption
Following the 2022 collapse, adoption and development activity on Terra 2.0 has been minimal. While the platform technically supports DApp development, there is limited current usage of the network for its stated purposes.
Platform Development
Development activity continues but at a reduced pace compared to the original Terra ecosystem. The project maintains basic blockchain infrastructure and supports basic smart contract functionality.
Token Distribution
The token distribution for Terra 2.0 included an airdrop to holders affected by the original collapse, with allocations for community pools and development. The distribution mechanism aimed to compensate affected users rather than enrich founders.
Crypto Impact
To assign a comfort level investing in Terra Ecosystem 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 Terra Ecosystem.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.