TerraClassicUSD
Crypto Overview
Background and Intended Utility
TerraClassicUSD (USTC), formerly known as TerraUSD (UST), was designed as an algorithmic stablecoin meant to maintain a 1:1 peg with the US dollar through a mint-and-burn mechanism with the LUNA token. The intended purpose was to serve as a stable medium of exchange and store of value in the Terra ecosystem.
Current State and Actual Utility
Following the catastrophic de-pegging event in May 2022, USTC lost its dollar peg and currently trades at a fraction of a cent. The original Terra ecosystem collapsed, leading to the creation of a new Terra chain, while the original chain was renamed Terra Classic. USTC no longer functions as a stablecoin and has essentially become a speculative token with no practical utility.
Tokenomics and Distribution
The current circulating supply of USTC is approximately 9.8 billion tokens. The token's distribution was severely impacted by the collapse, with many original holders suffering significant losses. There is no clear vesting schedule or token distribution plan in place for the remaining supply.
Development Activity
While there are some community efforts to revive the Terra Classic ecosystem, development activity on USTC specifically is minimal. The original development team has moved to the new Terra chain, leaving USTC with limited technical support or ongoing development.
Business Model Assessment
The current business model is effectively non-existent. While the original stablecoin mechanism was innovative, the implementation proved fundamentally flawed, leading to a complete failure of its intended purpose. The token now primarily exists as a speculative instrument with no clear path to utility restoration.
Crypto Impact
To assign a comfort level investing in TerraClassicUSD 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 TerraClassicUSD.
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.
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