Terraform Labs (TFL), the cryptocurrency developer team behind Terra (LUNA), announced that proposal 4790 was successfully accepted with great community support.
The proposal outlines plans to strengthen the Terran economy by leveraging TFL’s resources and expertise.
According to TFL’s statement, it has begun evaluating opportunities to deploy non-LUNA capital in collaboration with community partners to support the growth of the ecosystem. The company will cover 50% of the fees collected by Terra applications through January 2025, allowing ecosystem teams to earn 75% of the fees they earn on-chain.
Terraform Labs CEO Chris Amani recalled the unique challenges faced by Terra founders due to the collapse of UST. Amani said that Terra’s success should also include the founders who stay at Terra and develop useful products.
Amani also emphasized the need for aggressive investments to create products that are useful/fun for the community and stay ahead of the competition.
Funding all of this through the Community Pool would not be successful, Amani said. He suggested that TFL could solve this problem, but this would need the support of the community. With the adoption of proposal 4790, TFL is requesting 150 million LUNA from the Community Pool, which will be allocated as follows:
- 100 million LUNA: for TFL treasury
- 25 million LUNA: for strategic partnerships and ecosystem project incentives
- For 25 million LUNA liquidity fund: To be matched with TFL’s non-LUNA treasury and used appropriately.
The proposal will be implemented in four parts:
- Posting the proposal on Agora for community discussion (Completed).
- Posting an on-chain bid for 150M LUNA to be sent to the vesting smart contract, 25 million LUNA will be made available for the liquidity fund and the rest will be subject to vesting terms.
- Release of on-chain proposal to lock the Community Pool by January 2025
- Posting an on-chain offer to implement the Fee Sharing Module
*This is not investment advice.