Terra
Crypto Overview
Purpose and Intended Use
Terra 2.0 was launched in May 2022 following the collapse of the original Terra ecosystem (LUNA Classic). The new LUNA token serves as the native staking and governance token of the Terra blockchain. Its primary stated purposes are to facilitate decentralized governance of the network and secure the blockchain through staking.
Business Model and Current Usage
The current Terra 2.0 ecosystem functions primarily as a blockchain platform for decentralized applications, with LUNA used for staking and governance. The platform maintains a focus on building decentralized applications, though with significantly reduced scope compared to its predecessor. The ecosystem notably eliminated the algorithmic stablecoin mechanism that led to the original Terra's collapse.
Real-World Adoption
The Terra 2.0 ecosystem has seen limited adoption since its launch, with most activity centered around basic governance and staking operations. The blockchain continues to support some dApp development, though at a much smaller scale than its predecessor.
Platform Development
Development activity continues on the Terra 2.0 blockchain, though at a reduced pace compared to the original Terra. The project maintains an open-source approach with regular updates to its core infrastructure.
Token Distribution
The new LUNA token was distributed through an airdrop to holders of the original LUNA and UST tokens, with specific allocations for community pools and ecosystem development. The distribution model includes vesting periods for pre-attack LUNA holders.
Crypto Impact
To assign a comfort level investing in Terra 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.
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.