Terra developers propose revised 95M LUNA ecosystem funding program

October 17, 2022 Coin Telegraph

It is an update to the original 100M ecosystem funding proposal, which Terra developers say did not fit the community's needs.

On Monday, developers of the Terra ecosystem, which consists of Luna Classic (LUNC) — formerly known as Terra (LUN, TerraUSD (USTC), and Luna 2.0 (LUNA), proposed a revised expansion program for allocating 95 million LUNA ($248 million). As told by Terra, the new proposal is designed to incentivize development in the Terra ecosystem and fix issues in the original proposal.

In the original plan, around 10% of LUNA's total supply, or 100 million LUNA, would be allocated to the ecosystem, with 80% of this amount going to developer mining rewards. However, Terra staff explains that there are only a handful of projects with total value locked on the protocol, and such lack of competition would not result in the proper distribution of mining revenue.

Under the new proposal, developer mining rewards would decrease from approximately 80 million LUNA to 20 million LUNA. On the other hand, 50 million LUNA would be reallocated as liquidity mining rewards to incentivize building decentralized exchanges on the Terra ecosystem. Another 20 million LUNA would be given as developer grants, with a maximum recipient amount of 125,000 LUNA per project per year. Finally, 5 million LUNA will be given to users to incentivize traction.

1/ Attention #LUNAtics, a new proposal has just been posted on Agora outlining a new ecosystem expansion program - The Terra Expedition https://t.co/wW92766GXj
— Terra Powered by LUNA (@terra_money) October 17, 2022

A seven-member committee consisting of TerraForm Labs (TFL) employees, community leaders and external experts will oversee the allocation of funds. The appointment period will be one year, with non-TFL employees in the group receiving a monthly compensation of 1,000 LUNA. Although the committee members will vote to decide on funding proposals, the committee, itself, will have discretionary authority over the allocation of funds.

Meanwhile, the treasury will be managed by a separate group consisting of two validators, two community members and three members of TFL. A few months earlier, the Terra Luna ecosystem suffered a devastating $40 billion collapse, with the algorithmic LUNC-USTC coin pair spiraling out of control as part of a week of intense sell-offs. Since then, the ecosystem has partially stabilized but remains well below of pre-crash market valuation. According to DefiLlama, TVL on Luna currently stands at $51 million.

While Its Lost 94% in Value Since the Collapse, Terra’s Fractured Ecosystem Is Still Worth $2.5 Billion

October 16, 2022 Bitcoin.com

Can Terra Classic’s USTC Stablecoin Ever Reclaim $1?

October 10, 2022 The Crypto Briefing

WSJ: Terraform Labs claims case against Do Kwon is ‘highly politicized’

September 29, 2022 Coin Telegraph

Coin Telegraph

A spokesperson for the company behind Terra said it believes prosecutors heeled to public pressure and expanded the definition of a security after its associated cryptocurrencies collapsed.

Terraform Labs, the company behind the development of the Terra (LUNA) blockchain said South Korea’s case against its co-founder Do Kwon has become political, alleging prosecutors expanded the definition of a security in response to public pressure.

“We believe that this case has become highly politicized, and that the actions of the Korean prosecutors demonstrate unfairness and a failure to uphold basic rights guaranteed under Korean law,” a Terraform Labs spokesman said to The Wall Street Journal on Sept. 28.

South Korean prosecutors issued an arrest warrant for Kwon on Sept. 14 for violations of the countries capital markets laws, but Terraform Labs laid out a defense arguing Terra (now known as Terra Luna Classic (LUNC)) isn’t legally a security, meaning it isn’t covered by capital markets laws.

The spokesman alleged prosecutors of expanding the definition of a security due to intense public pressure from the collapse of Terra and its connected algorithmic stablecoin TerraUSD (UST), now known as TerraClassicUSD (USTC).

“We believe, as do most in industry, that Luna Classic is not, and has never been, a security, despite any changes in interpretation that Korean financial officials may have recently adopted.”

The argument by Terraform Labs’ stems from the unclear regulatory status of cryptocurrencies and the companies who create and issue them.

Currently, capital market and electronic securities' systems in the country don’t include a legal definition of non-standardized securities issued through a blockchain.

The country is moving to regulate the space with its financial regulator, the Financial Services Commission (FSC) preparing guidelines for security tokens by the end of 2022.

A leaked government report in May further revealed South Korea’s plans to roll out a crypto framework by 2024.

Kwon’s whereabouts remain unknown and Terraform Labs did not comment on his location citing physical security risks, but Kwon says he’s not making an effort to hide even after a notice was sent to global authorities by Interpol.

LUNA 2.0 Token Jumps 200% Higher Against the US Dollar in 24 Hours

September 9, 2022 Bitcoin.com

Silver Supply Crunch Predictions, FDIC Issues Cease and Desist Order to FTX US, and More — Bitcoin.com News Week in Review

August 28, 2022 Bitcoin.com

Terra’s 2 Classic Coins Mysteriously Spike in Value, USTC Climbs 42% Higher in 24 Hours

August 23, 2022 Bitcoin.com

Another Stablecoin Depegs From USD Parity, Polkadot-Based AUSD Loses 98% in Value

August 14, 2022 Bitcoin.com

CoinShares reports $21.7M loss tied to Terra implosion

August 2, 2022 Coin Telegraph

CoinShares reports .7M loss tied to Terra implosion

Coin Telegraph

The firm's book-making took a huge hit after being exposed to the TerraUSD collapse.

On Tuesday, European cryptocurrency investment firm CoinShares posted its interim Q2 2022 results. Compared to the prior year's quarter, the firm's revenue declined from 19.6 million pounds ($23.89 million) to 14.2 million pounds ($17.31 million). At the same time, its net income fell from 26.6 million pounds ($32.42 million) in Q1 2021 to 0.1 million pounds ($0.12 million).

CoinShares explained that the losses were largely tied to its exposure to the Terra (LUNA) — now called Terra Classic (LUNC) — ecosystem, which collapsed in May of this year:

"While our Asset Management business continued to generate solid profit, the Capital Markets business experienced a one-off loss of £17.7 million following the de-pegging of Terra Luna. The financial impact of this episode, despite being relatively small when compared to the losses incurred by other players in our industry, had a material impact on our quarter."

Coinshare Capital Markets typically does not take directional positions and was not directly exposed to the Terra Luna collapse. However, at the time of the incident, the firm was carrying a book linked to the TerraUSD stablecoin, resulting in an exceptional loss.

CoinShares CEO Jean-Marie Mognetti has nevertheless expressed optimism about the firm's future operations, saying:

"In light of the market turmoil, we have reviewed our risk profile and moved into a more defensive mode. CoinShares has sufficient resources to navigate the markets during this volatile time thanks to an effective strategy, a robust balance sheet, and a seasoned, world-class team."

For its next steps, CoinShares plans to uplist into the Nasdaq Stockholm Main Market after gaining an Alternative Investment Fund Manager license. During the second quarter, CoinShares launched five new physical products, including CoinShares Physical FTX Token, CoinShares Physical Chainlink, CoinShares Physical Uniswap, CoinShares Physical Staked Polygon and CoinShares Physical Staked Cosmos. The firm possessed 220.8 million pounds ($269.15 million) in net assets at the end of Q2.

*The price of TerraUSD in the past year*. *Source: CoinGecko*

Q2 2022 Cryptocurrency Report Highlights Terra’s Collapse and Capital Exiting the Crypto Ecosystem

July 23, 2022 Bitcoin.com

USTC

Share this video