Terra Classic

Halal Rating :
Comfortable
Last Price $0.000093 Last updated:
Rank 147
1D Change -2.80 %
Market Cap $512.31m
Circulating supply 5,506,422,526,482
Maximum supply None
Crypto Overview Crypto Impact

Crypto Overview

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Overview

Terra Classic (LUNC) is the original Terra blockchain that existed before the May 2022 collapse of the Terra/LUNA ecosystem. After the collapse, the original chain was renamed to Terra Classic, while a new chain (LUNA) was created. LUNC continues to operate independently with its own community and development efforts.

Purpose and Utility

Originally, Terra Classic was designed as a dual-token system with LUNC (formerly LUNA) working alongside the UST stablecoin. The primary utility was to serve as a governance token and stabilization mechanism for the UST stablecoin. After the collapse and separation from the new Terra chain, LUNC's current utility includes governance of the Terra Classic blockchain, staking for network security, and serving as a medium of exchange.

Business Model and Development

The current Terra Classic ecosystem is maintained by community developers and validators. The project has implemented several changes including a 1.2% tax burn on all on-chain transactions to reduce supply, staking mechanisms, and governance proposals. The development activity is primarily community-driven, with various improvement proposals being implemented.

Real-World Adoption

The network maintains active users and validators, though at a significantly reduced scale compared to its pre-collapse state. The primary usage currently centers around trading, staking, and governance participation. Several exchanges continue to support LUNC trading and staking.

Token Distribution

The token distribution was significantly affected by the collapse and subsequent hyperinflation event. Current distribution is more decentralized due to the original team's departure to the new Terra chain. The project is now community-owned and operated.

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”.

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