Luna Jumps as Terra Asks USD 38M From Community to Fund an Undisclosed Sports Partnership
Terra co-founder Do Kwon has requested TerraUSD (UST) 40m from the community, a decentralized stablecoin running on Ethereum (ETH), in order to fund a Terra Brand partnership with an undisclosed sports franchise describes as "one of the four major American professional sports leagues" – seeing Terra's native coin LUNA jump today.
At 10:49 UTC on Tuesday morning, Luna is trading at USD 51.8, up by 11.5% over the past 24 hours. Meanwhile, looking at its performance longer-term, the coin is down 22% in the past week and 44% in the past month, while it appreciated 3,432% over the past year.
The team, Kwon wrote, is requesting USD 38.15m "to the franchise" from the community pool to fund a five-year exclusive partnership deal "to promote the Terra brand across various parts of its home Venue and its TV network as one of its leading partners."
As for this 'redacted franchise, Kwon said that:
The "proposal involves a legendary sports franchise and a household name in one of the major four American professional sports leagues – the NFL, NBA, NHL, and MLB."
He refrained from revealing the identity of the franchise citing legal reasons.
Kwon added that the terms of the deal have already been negotiated, per which the community pool will need to pay USD 37.5m over the course of five years (or USD 7.5m per year). The pool also needs to pay USD 650,000 to "cover construction, renovation, and re-design costs."
Kwon said that the decentralized finance (DeFi) ecosystem has tried numerous ways, including various forms of "bribooors, threadooors, incentivizoooors," to lure new investors, adding that it should also exploit new opportunities when they present themselves.
"This is one of those opportunities. It’s time to fuse the real world with the metaverse. We would like to propose a novel community spend initiative – the first of its kind in the industry," he said.
If the deal is inked, the UST 40m raised funds would be distributed to a multisig wallet controlled by the Terra Community Trust (TCT), which is meant to hold and manage the funds in the best interests of the community.
"The TCT has been set up so that the Terra Community Pool (i.e., DAO) is the beneficiary of the trust, where the 3 trustees selected are beholden to acting on behalf of the will of the beneficiary – the Terra Community Pool’s governance outcomes in applicable cases such as this instance," Kwon concluded.
The three trustees include two trustees and one enforcer, the members being:
- Enforcer – Gabriel Shapiro (General Counsel at Delphi Labs)
- Trustee – Remi Tetot (Co-Founder of RealVision)
- Trustee – Ryan Moore (Partner at Accomplice Blockchain & Board Member of Draft Kings).
Kwon described the TCT as "a first-of-its-kind legal structuring for a DAO," which, though created for this purpose, can later be used by the community "for carrying out actions pursuant to successful governance proposals where a legal entity capable of signing contracts and distributing funds to relevant counterparties is needed or otherwise appropriate."
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