Recently, we were shocked by a tweet from Terra Poker, a project running on the Terra Classic network, indicating that a significant amount of 363,800 LUNC had been burned, meaning that a large number of LUNC tokens had been removed from the Terra Classic network. It is widely known that poker activities are considered haram (forbidden) due to their association with gambling, which involves elements of maysir (gambling).
We have viewed Terra Classic (LUNC) as a Shariah-compliant project since there are no activities, products, or projects conducted directly by Terra Classic that violate Shariah principles. However, the question arises as to whether the Terra Poker game and its burning mechanism would impact the Shariah status of Terra Classic (LUNC).
Shariah Perspective
In this article, the Shariah discussion will focus on the Terra Poker project itself and the burning mechanism process used within Terra Classic.
Terra Poker
Terra Poker is the first P2E Texas Hold'em style poker game on the Terra Blockchain. We are aware of the prohibition of poker games due to the gambling element involved. However, the prohibition of this game should not affect the Shariah status of Terra Blockchain and Terra Classic (LUNC). This is because Terra Poker is not a project run by Terra Classic itself, but rather a project developed by developers within the Terra Blockchain. Therefore, the existence of the Terra Poker game does not affect the Shariah status of Terra Classic (LUNC), unless Terra Poker itself is a project run by Terra Classic.
Burning Mechanism
Burning refers to the process of eliminating a digital asset, rendering it unusable, and reducing the token supply. The burning mechanism is the methods used to eliminate these tokens. It is also one of the factors that need to be analyzed to determine whether a crypto project is Shariah-compliant or not.
In the case of Terra Poker, it has been determined that 10% of the fees collected from the game will be burned. This decision is supported by the majority of Terra Blockchain users. However, Terra Poker is not the original burning mechanism established by Terra Classic itself. The original burning mechanism implemented by Terra Classic is a predefined burning process that occurs automatically with each transaction within the Terra Classic network.
Conclusion
Therefore, the existence of the Terra Poker project and its utilization as a token burning method does not affect the Shariah status of Terra Classic. As stated in Surah Al-An'am, verse 164:
[...No person earns any (sin) except against himself (only), and no bearer of burdens shall bear the burden of another...]
Thus, we believe that Terra Blockchain and Terra Classic (LUNC) should not be deemed haram solely due to the presence of the Terra Poker project, which is developed by independent developers and not directly by Terra Classic itself. The function of Terra Poker as a burning mechanism also does not impact the Shariah status of Terra Classic, as it is not the original burning mechanism introduced by Terra Classic, but rather a developer-initiated burning mechanism approved by the community of Terra Blockchain.