New Development in LUNC Can Help UST Re-peg Back to $1

Luna Classic (LUNC), formerly known as LUNA, TerraUSD Classic (USTC), and Luna 2.0 (LUNA) are all parts of the Terra ecosystem. On Monday, the developers of the Terra ecosystem submitted a revised expansion plan for allotting 95 million LUNA ($248 million). According to Terra, the new plan is intended to encourage ecosystem development and address problems with the previous one.

The ecosystem would receive approximately 10% of the total supply of LUNA, or 100 million LUNA, with 80% of this sum going to developer mining awards.

In a more recent news, LUNC’s core developer, Edward Kim, has tweeted that,

“It is clear that we need to assign 6-9 multisig signers to receive this wallet and then we need to decide what to do with this money. By putting into the community pool we are delaying the decision of what to do until a later time, weeks to potentially months down the line. I believe the time to decide is now. No matter what, our next move requires a community governance vote to pass. So let’s figure out all the details now and execute.”

The LUNC community has greatly supported Edward’s words and are now gearing up for the upcoming governance vote. After Do Kwon, who got served by numerous lawsuits & later ditched LUNC for the new LUNA 2.0, the community has only Edward to look up to, as their only hope of survival & resurrection.

Please support @edk208 proposal 8813 to establish the #LUNC Terra Grants Program. This will promote transparency and help funds be distributed effectively. pic.twitter.com/DmZW6kDseS

— David Goebelt (@davidagoebelt) October 28, 2022

Developer mining payouts will drop from roughly 80 million LUNA to 20 million LUNA under the revised proposal. As a reward for mining liquidity, 50 million LUNA would instead be redistributed to encourage the creation of decentralised exchanges inside the Terra ecosystem. Another 20 million LUNA would be distributed as developer grants, with a cap of 125,000 LUNA per project per year for recipients. In order to encourage traction, users will receive 5 million LUNA.

The proposal further states:

We propose, that the decentralized governance structure, provide written assurances and agreements to the signatories of the ethereum cross chain multisig wallet [0x9538D438d506F…..] (“TC Community MultiSigs”) for the funds within that wallet to be used for L1 development on the Terra Classic blockchain. The Community votes to reclaim possession of this wallet and all assets of $4.16 million at current prices, therein to be allocated to L1 development on chain.

Source