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Terra Classic Community to Introduce a DeFi Debit Card: Good Utility, or Bad Idea?

Published September 1, 2023 1:12 PM
Omar Elorfaly
Published September 1, 2023 1:12 PM

Key Takeaways

  • Community to vote for a “LUNA Classic Decentralized Debit Card” proposal.
  • A validator wants to introduce a decentralized debit card into the Terra Luna Classic ecosystem.
  • Investors are wary of involvement in the Terra ecosystem.

A validator set up a vote  to develop a Debit Card for LUNA Classic. Community members are in the process of voting for the development of the decentralized card. 

The card’s function is relatively straightforward, allowing users to make purchases at common vendors like supermarkets, coffee shops, and restaurants.

However, the validator did not clarify their plans for developing this card in detail.

LUNA Debit Card Is A Go?

The validator’s proposal  has received 96.33% “Yes” and 3.67% “No” votes. Validators such as Garuda Universe and Coinpayu have shown support for the proposal. However, the community is still unaware of the proposal details as the validator remained anonymous so far.

“The proposal of this new validator is that the “Secure LUNA Validator” can use it’s[sic] own funds to promote and assist the LUNA Classic community with the most secure LUNA validators. By voting YES, we will invest in and promote more new validators, enhancing the community’s experience,” the validator said.

More Products From Terraform Labs?

LUNA token creator, Terraform Labs, has been the center of talks regarding major failures in the crypto market. The company’s collapse has been compared to similar disasters such as FTX’s one.

The company founder, Do Kwon, is a fugitive currently residing in Montenegro.

Kwon posted €400,000 in bail while awaiting trial for his false documents case, after being caught using counterfeit travel documents while attempting to fly to Dubai.

Initially sentenced to four months in prison, the judge ruled that Kwon had served most of his sentence before posting bail.

Kwon is currently a fugitive from both the United States and South Korean governments.

However, South Korean courts surprisingly supported Terraform Labs’ claim that LUNA is not a security. The court sees that the sales of LUNA and MIR were too minuscule to be considered securities. Instead, South Korean authorities see that sales of LUNA and MIR were just a way to encourage participation in the Terra ecosystem.

In the meantime, U.S. courts do not share the same sentiment. US District Judge Jed Rakoff ruled in favor of the US Securities and Exchange Commission (SEC) to move on with litigation against Terraform Labs and its founder, Do Kwon.

The company and Kwon tried to dismiss the SEC’s case, arguing that the digital assets sold on their platform are not securities, drawing inspiration from the recent XRP victory.

With the controversies surrounding Terraform Labs, its founders, and its products, it’s understandable that investors might hesitate to rely on products within the same ecosystem, including a debit card.

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