Terra Classic
Crypto Overview
Project Overview
Terra Classic (LUNC) is the original Terra blockchain that underwent a significant transformation following the collapse of its algorithmic stablecoin UST in May 2022. The project initially aimed to create a price-stable cryptocurrency (UST) that would maintain its peg through an algorithmic relationship with LUNA (now LUNC).
Intended Utility
The original purpose was to serve as part of a dual-token economic system where LUNC would act as a utility and governance token, helping maintain the UST stablecoin's peg through a mint-and-burn mechanism. After the collapse, the community took control of the network, implementing various changes including a 1.2% tax burn mechanism on all transactions to reduce supply.
Current Utility and Usage
The actual utility has shifted dramatically from its original purpose. Currently, LUNC functions primarily as a speculative asset with some governance capabilities through the Terra Classic community. The network maintains smart contract functionality but has limited practical applications compared to its original scope.
Token Distribution and Governance
Following the collapse, the token distribution was significantly affected by hyperinflation and subsequent community-led burning initiatives. The project is now governed by the community through various proposals and implementations, with no central team controlling development.
Development Activity
Development continues through community efforts and various development groups, though at a much slower pace than during the original Terra ecosystem. The focus has shifted to rebuilding value through deflationary mechanisms and governance improvements.
Crypto Impact
To assign a comfort level investing in Terra Classic 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 Classic.
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.