SDT

coinfeeds-bot

tldr; Zunami Protocol lost $2.1M in a price manipulation attack on its Ether- and USD-pegged stablecoins. The attacker drained Zunami's liquidity pools on Curve, causing the stablecoins to depeg significantly. Peckshield raised the alarm but did not provide transaction details. The exploit involved flash loans and manipulating LP token prices. The proceeds were deposited into Tornado Cash. The Sushiswap SDT pool used by the hacker is safe. The incident raises questions about the security firms involved and their handling of sensitive information. The SEAL 911 hack hotline aims to provide a fast response for whitehat hackers to alert vulnerable protocols. Keeping DeFi safe is a constant challenge. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR. Try our free crypto chatbot at https://chat.coinfeeds.io*

CointestMod

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestMod

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestMod

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestMod

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestMod

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestMod

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestMod

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestMod

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestMod

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestMod

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestMod

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestMod

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestMod

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestMod

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestMod

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestMod

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestMod

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestMod

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestMod

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestMod

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestMod

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestMod

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestMod

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestMod

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestMod

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestMod

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestMod

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestMod

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestMod

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestMod

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestMod

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestMod

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestMod

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestMod

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestAdmin

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

Jaizhanju

I've asked myself is 15%\~ APY (for example the MIM/3CRV pool on Convex has this right now) for a staking stablecoins in this current market climate reasonable and if so how? I've concluded that when it comes to staking with stablecoins the actual APY / ROI from things like the underlying lending and exchange fees you collect are very small compared to the fee that comes from selling the cryptocurrency the project gives you as a bonus. DAOs like [Curve.fi](https://Curve.fi) and similar have done something really cleaver where you can lock the CRV token as veCRV to get up to 150% bonus emissions of CRV. This creates a sort of positive feedback loop that creates a self-fulfilling prophecy driving the CRV price up. Then you add a layer on top of that with [Convexfinance.com](https://Convexfinance.com) which also extracts more value from the voting power the locked CRV would give you. Since everyone is sharing their bonuses on Convex pools that are not utilized can be by people who are more knowledgeable about a certain pool can use up that pools bonus where a single entity could not feasibly keep up with all the different options and their risks. Projects also bid on this to give their pools more weight (i.e. more CRV emissions) which draws more liquidity. [Stakedao.org](https://Stakedao.org) tries to do more stuff with this to extract even more value from this strategy. Most of the APY / ROI is from the projects own tokens (in these cases CRV, CVX and SDT). So the question is what gives these tokens value as compared to a Ponzi? I think it is the network effect and the fact that if people invest in the tokens they kind of commit to staking stablecoins. When enough people do this it draws attention from projects seeking liquidity since they can buy votes with the tokens (at least with CRV and CVX) and use it to gain more liquidity which in turn creates even more demand for the token. Also these different tokens are like layers on top of each other that try to extract even more value than the last layer. And since you get voting rights it's a bit similar to investing in a company since the value it creates for projects actually gives the shares a value.

CointestAdmin

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestAdmin

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestAdmin

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Tether Pro-Arguments Below is an argument written by aqqlebottom which won 3rd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Tether is the name of a blockchain-based cryptocurrency backed by U.S. dollars, also known as Tether. To put it another way, the financial institutions that are serving as collateral have actual cash on hand in the form of reserves. Stablecoins and the U.S. dollar have a one-to-one exchange rate if the government fully backs the dollar. It is anticipated that stable coins, as opposed to Bitcoin and Ethereum, would retain their value over the long term. > > Pros: > > • With the introduction of Tether and other stablecoins, it is now easy and quick to convert any cryptocurrency for Tether. In the past, exchanging a cryptocurrency for cash would take days and entail transaction fees. Investors' portfolios become more flexible and stable due to the creation of liquidity for exchange platforms, the creation of free exit alternatives for investors, and the creation of liquidity for exchange platforms. > > • Tether is also more efficient and less expensive than traditional banks and financial institutions when transferring money across the globe. Although most people would avoid using Bitcoin or Ethereum for day-to-day purchases and transactions because of their high volatility levels, utilizing Tether is a no-brainer. > > > • Tether continues to be an excellent investment for all of the reasons listed above. Even though Tether is not a long-term investment that will generate returns on its own, there are loan businesses, exchanges, and wallets that will pay you substantial interest rates to have USDT in your possession on their platform. > > • It's a dependable product with constant price throughout time. The USDT currency has a value of one USDT for every one dollar in the United States dollar. > > > • Because of its simplicity, SDT is well-suited for usage in exchange systems such as electronic trading platforms. Therefore, trading pairs are available on almost all online brokerage platforms. > > • While it comes to safeguarding traders' and traders' interests when dealing with cryptocurrencies, more volatile cryptocurrencies such as Bitcoin may be quickly swapped for a more stable cryptocurrency. > > > • Using USDT, money transfers via the decentralized network are cheaper and faster than they would be otherwise. Because the token was always intended to have the same value as one U.S. dollar. It can transfer money to anybody on the network through the Ethereum network, regardless of where the money is coming from. When it comes to functionality, the token retains all of the features of a traditional coin in usage. There are no transaction fees when utilizing a private wallet that is compatible with the blockchain. Using a third-party wallet system, on the other hand, may incur additional costs as a result. Over and above the fiat deposition, a user must pay a small fee, usually one U.S. dollar. Individuals who use the USDT network to transfer money will not have to worry about market capitulation since the government pre-determined USDT value. > > • The primary advantage of using USDT on the tether network is that it allows users to earn from the platform by reselling their USDT to other users. As an alternative to USDT, you have the option of withdrawing funds using fiat currency. It would be completely free to withdraw money in fiat currency, on the other hand. Your USDT token is deleted by the exchange when you convert it to fiat, and the network is not liable for any fluctuations in the value of the local currency. The value of the platform will stay stable as long as you continue to use it. > > > • Because of governmental limitations, other cryptocurrency platforms cannot utilize money; as a result, USDT is used to assist other sites in developing. Because USDT is equal in value to the U.S. dollar, this issue is resolved due to the token. > > • USDT is a lifesaver for those who are fresh to the cryptocurrency industry. They can modify their system to make it tether compliant. As a result, new companies will convert their fiat money into USDT and keep the USDT as a reserve fund for the future. Because of the intrinsic stability of the token, investors can be certain that their money will never be wasted. The total amount of USDT in circulation is $450 million, and as a result, the total amount of USDT in reserve funds is also $450 million. > > > • According to the creator, other cryptocurrencies may be readily linked with the token via the use of a specific software package. Using Tether, it is possible to link a bitcoin wallet with the cryptocurrency. > > > Disclaimer: I do own some Tether ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

Low_Appointment_3917

SDT . I randomly generated these letters. Not financial advice

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.

CointestAdmin

#Terra Pro-Arguments Below is an argument written by ramjithunder24 which won 1st place in the Terra Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclosure: I do not own any Terra (Luna), neither am I affiliated with them. > > **Intro** > > Terra is a blockchain protocol that uses stablecoins in order to facilitate payments systems. > > Terra aims to utilise the price stability of fiat currencies and Bitcoin's decentralised characteristic for faster and affordable payments. > > **Terra's Defi Ecosystem** > > According to [DeFi Llama](https://defillama.com/chains), Terra's Defi ecosystem is the second-largest Defi protocol in terms of Total Value Locked (TVL), making it a prominent Defi protocol in the crowded Defi landscape. For investors that have Defi as one of their top-priority checkboxes when investing in coins, this itself should give investors a lot of confidence in Terra (LUNA). > > Moreover, Terra has bridges to many other prominent crypto chains such as ATOM, DOT and ETH. In other words, Terra provides many different alternatives / a wide range of choices for its Defi services. > > **LUNA's Deflationary Status** > > With the [Columbus-5 upgrade](https://coinmarketcap.com/alexandria/article/columbus-5-is-almost-here-what-does-that-mean-for-terra-and-its-users-flipside-crypto) in September 2021, LUNA burned to mint UST will be "actually burned", as opposed to being sent to the community pool (which was what was done previously). This is designed to increase the value of the currency, provide more incentive to for LUNA holders to stake, and to make LUNA deflationary in the long run. > > **Terra's Stablecoins** > > Terra's stablecoins are a key part of their ecosystem and their overall goals and values. As stated in the intro, Terra wants to use the advantages of fiat and crypto to create better payment mechanisms. And this is where their stablecoins come in. > > Currently, the most popular stablecoins under the Terra ecosystem are UST (pegged to the US Dollar), SDT (pegged to the IMF's Special Drawing Rights basket of currencies), and KRT (pegged to the South Korean Won). > > These are algorithmic stablecoins in which the stablecoin's supply is adjusted according to it's demand. To be more specific,[1 UST can be exchanged for $1 USD's worth of LUNA (Terra's native coin) at any time.](https://angelprotocol.medium.com/how-does-ust-work-ec7b2f6e2c2c) Hence, if the UST becomes worth less than $1 USD, buyers will quickly buy it and swap it for the $1 USD worth of LUNA, hence making a profit. This creates demand for UST and enables its price to recorrect itself to $1 USD. Additionally, for every new UST that is produced, $1 USD worth of LUNA is burnt. > > This is different from the approach that USDT (Tether) or USDC have taken for their stablecoins -which was to back the stablecoins with a fiat currency. And Terra has received criticsm about their approach and has started buying Bitcoin (BTC) to back their stablecoins. In fact, Terraform Lab's (the company behind Terra) founder -Do Kwon- announced a paln to [buy and hold $10 Billion worth of Bitcoin](https://twitter.com/stablekwon/status/1503296630396645376) to back it's stablecoins. > > [“The reason why we are particularly interested in Bitcoin is because we believe that is the strongest digital reserve asset,”Kwon said in an interview with Bloomberg previously this month.](https://www.bloomberg.com/news/articles/2022-03-28/terra-adds-135-million-in-bitcoin-purchases-to-back-stablecoin#:~:text=Terra's%20purchases%20are%20partly%20in,Luna%20tokens%2C%20Terra's%20native%20cryptocurrency) (Yes, this hyperlinked section is copy-paste, but it's from an interview and is directly quoted, so it doesn't break any rules. > > But how are the stablecoins related to LUNA? Well, one can argue that the LUNA token and UST are somewhat dependent on each other. In fact, the LUNA token will "succeed" if UST remains stable. > > **Response to Criticisms of Terra** > > One of the most common criticisms of Terra is that it is **not decentralised enough**. Assuming that [LunaRichList](https://lunarichlist.com/) is somewhat (by somewhat, I mean maybe not up to the decimal places - also, the site says its only for experimental purposes) correct, Terraform Labs holds a significant portion of the total LUNA coin supply. Hence, it is an undeniable truth that at the moment, LUNA seems pretty centralised. > > However, earlier this year, Terraform Labs donated a large amount of LUNA to [lfg.org](https://lfg.org), further lowering their stake in the supply of LUNA. If Terraform labs had malicious intents, they would not have done this. In fact, TFL regularly donates LUNA to LFG, which is a seperate entity and is run by experts in the crypto industry. Additionally, operating a [Terra node](https://docs.terra.money/docs/full-node/run-a-full-terra-node/system-config.html) is much less resource-intensive than running a [Solana node](https://docs.solana.com/running-validator/validator-reqs), making it more decentralisable. I understand that this is not a full, complete counterargument to Terra's centralisation issue, but it is meant to provide a clarification on why Terra is most likely not a rugpull. Lastly, Terraform Labs has a kind of [kill-switch](https://twitter.com/lunafomo/status/1440461303932338179) in which Terraform Labs will be completely separated from LUNA and the Terra network, enabling the final step to full decentralisation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mwy/top_10_terra_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive##wiki_terra.28luna.29) to find arguments on this topic in other rounds.