Terra Developers Propose $250 Million Ecosystem Funding Program
The developers behind the remnants of the fallen Terra (LUNA) network have unveiled an ecosystem funding program worth some LUNA 95 million ($248 million), seeking to encourage developers, miners and users to develop the troubled ecosystem.
“This program will be funded with the 9.5% of the total LUNA supply that was earmarked at the launch of the new Terra chain. This incentive program will run for 4 years and will be managed by a community-elected committee that will be evaluated every 12 months,” according to the proposal.
Under the plan, the project will consist of four initiatives: a developer grants program of LUNA 20 million, a developer mining program comprising LUNA 20 million, a liquidity incentive mining program covering LUNA 50 million over a four-year period, and a user incentive program of LUNA 5 million, the proposal states.
“The Terra Expedition is a revised iteration of the Developer Mining Program and Developer Alignment Program initially defined at the launch of the Terra blockchain. The original proposal suggested that 9.5% of the total LUNA supply be distributed based on TVL, but given the current state of the Terra ecosystem, TVL-based allocation would mainly benefit a few protocols and would not have the intended effect of kick-starting the Terra ecosystem,” Terra said.
“This revised proposal aims to better align incentives across the ecosystem and focus on attracting developers, onboarding users and promoting deep liquidity,” according to the statement.
It is noteworthy that Terra Luna Classic has established itself as one of the most traded crypto assets in the market in the past weeks, with the token's trading volume reaching $400 million regularly. Major exchange Binance has played an important role in LUNC’s spiking volume after its CEO Changpeng ‘CZ’ Zhao announced a Terra Luna Classic token burn undertaking on September 26.
Terra Luna Classic’s token burn, scheduled to start every Tuesday, got rid of 5.5 billion LUNC tokens in the week that ended October 3. A further 2.9 billion LUNC were burned in the week that started on October 4 and ended on October 10.