Terra developers rethink their previous proposal of 100M ecosystem funding.
On Monday, developers of the Terra ecosystem — consisting of Luna Classic , which was formerly known as LUNA, TerraUSD Classic and Luna 2.0 —a revised expansion program for allocating 95 million LUNA . 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 explaine 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.
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