TerraClassicUSD
Crypto Overview
Overview
TerraClassicUSD (USTC), formerly known as TerraUSD (UST), was designed as an algorithmic stablecoin intended to maintain a 1:1 peg with the US dollar through a mint-and-burn mechanism with its sister token LUNA. The system catastrophically failed in May 2022, leading to a complete collapse of the ecosystem.
Intended Utility
The original purpose was to serve as a decentralized stablecoin for the Terra ecosystem, facilitating commerce and providing a stable medium of exchange. It used a complex algorithmic mechanism to maintain its dollar peg, rather than being backed by traditional collateral.
Current Utility
After the collapse, USTC lost its peg and now trades as a highly volatile cryptocurrency with no functional utility. While there have been community proposals to restore some value to the token, it currently serves no practical purpose beyond speculative trading.
Token Distribution and Governance
The original token distribution was relatively decentralized, but after the collapse, the ecosystem was largely abandoned by its original developers. The current trading activity is primarily driven by speculative interests.
Technology Assessment
The underlying technology, while innovative in its attempt to create an algorithmic stablecoin, proved fundamentally flawed. The current version exists on the Terra Classic blockchain but lacks any meaningful technological development or updates.
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.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.