LUNC Terra Luna Classic

Use Cases of Terra Luna Classic

Terra Luna Classic serves several purposes within its ecosystem:

• Staking and Governance: It is used for staking and governance on the Terra Classic blockchain. Users can stake Terra Luna Classic to validate transactions and participate in governance decisions.
• Payment Token: It acts as a medium of exchange within the Terra Classic ecosystem, allowing for fast and low-cost transactions. Many companies, projects, and decentralized applications (DApps) use Terra Luna Classic for transactions.
• Native Burn Mechanism: A portion of all transaction fees on the Terra Classic blockchain are burned, permanently removing Terra Luna Classic from circulation. This built-in deflationary pressure can support the price of Terra Luna Classic over time.
• Utility Token: It can be used to pay transaction fees and as a governance token to take part in the platform's decision-making process.
• Cross-Border Payments: Terra Luna Classic is used for cross-border payments, remittances, and payment platforms due to its low transaction fees and fast settlement times.
• Asset Management and Digital Identity Verification: Some companies use Terra Luna Classic for asset management and digital identity verification, extending its use cases beyond financial services into sectors like healthcare and education.

Pros of Terra Luna Classic

• Differentiation: Terra Luna Classic seeks to differentiate itself by using stablecoins pegged to fiat currencies, combining the borderless benefits of cryptocurrencies with the daily price stability of fiat currencies.
• Stable Team: Despite the uncertainty, Terra Luna Classic has a stable team and is supported by the Terra Alliance, a group of businesses and platforms advocating for greater adoption.
• Native Burn Mechanism: A portion of all transaction fees on the Terra Classic blockchain are burned, permanently removing LUNC from circulation, which could support the price of LUNC over the long run.
• Revival Efforts: The community has focused on reviving the project, leading to a brief rally following the approval and implementation of a tax burn proposal, which reduced the supply of Luna Classic and spurred demand.

Cons of Terra Luna Classic

• Initial Downturn: The Luna Classic price experienced a period of stagnation at $0.0001 for several months following the rebranding, reflecting the prevailing crypto market conditions.
• Loss of Peg: The collapse of UST in 2022 led to the loss of its 1:1 peg with the dollar, significantly impacting the value of Terra Luna Classic.
• Uncertain Future: The future of the blockchain is uncertain, with challenges in retaining development teams and protocols that were building on the old Terra to create new applications.
• Depreciation: The unexpected downturn of TerraUSD (UST) against the USD in early May 2022 dramatically depreciated the value of Luna, spiraling into a global crypto market meltdown.

Founders of Terra Luna Classic

Terra Luna Classic was founded by Do Kwon (full name: Kwon Do-hyung) and Daniel Shin (full name: Shin Hyun-seung). They co-founded Terraform Labs in January 2018, which led to the development of the Terra (LUNA) cryptocurrency and its associated stablecoin, TerraUSD (UST).

Investors in Terra Luna Classic

Terra Luna Classic was initially supported by various investors who participated in its early funding rounds. Key investors include those who participated in the initial coin offering (ICO) and private sales conducted by Terraform Labs, the company behind Terra Luna Classic.

• Early Investors: The project was backed by investors who purchased LUNA tokens during the seed round and private sale. These investors included venture capital firms and individual investors who saw potential in the Terra ecosystem's innovative approach to stablecoins.
• Community Support: Today, Terra Luna Classic is also supported by a vibrant community of holders and enthusiasts who continue to invest in and support the project. This community plays a crucial role in the ongoing development and revival efforts of Terra Luna Classic.
• Public Trading: Since its listing on various cryptocurrency exchanges, Terra Luna Classic has been available for public trading, allowing a broader range of investors to buy and sell the token. This includes both individual traders and institutional investors who may be interested in the project's potential for recovery and growth.

Halal Status of Terra Luna Classic

Terra Luna Classic is considered Haram by some sources due to its original purpose and current utility not aligning with Shariah guidelines.

Key Points:

• Original Purpose: Terra Luna Classic was initially designed to maintain a price-stable cryptocurrency (UST) through an algorithmic relationship with LUNA, which has since collapsed.
• Current Utility: It now functions primarily as a speculative asset with some governance capabilities, which does not meet the criteria for Shariah compliance.
• Community Governance: The project is governed by the community through proposals and implementations, but this does not necessarily make it halal.
• Shariah Analysis: The token's distribution and governance have been significantly affected by hyperinflation and community-led burning initiatives, which further complicates its Shariah status.

Conclusion:

Given these points, Terra Luna Classic does not meet the criteria for being considered halal according to some sources.