Terra Unveils 4-Year Plan to Revive LUNA Ecosystem

Encouraging developers and boosting user activity with the LUNA token are at the core of the proposal.

Earlier this week, Terra developers revealed a new proposal aimed at rejuvenating the once-prominent blockchain network.

Named "Terra Expedition," this proposal is an updated version of the developer program established by Terra since the project's inception.

Under the plan, 9.5% of the total LUNA supply will be allocated to the new Terra ecosystem— the blockchain forked from the collapse of LUNA-UST in May. This initiative will be rolled out over four years and managed by a community-elected committee that will review the plan annually. The proposal outlines:

"Terra Expedition is a four-year program designed to advance the Terra ecosystem through a series of initiatives with three main goals: encouraging developers to build on Terra, increasing liquidity on Terra, and attracting users to Terra."

Regarding LUNA distribution, the proposal specifies:

– 20 million LUNA allocated to app developers, with up to $40,000 in payments upon successful audits and project launches on the Terra network. Proposed projects include decentralized exchanges, lending protocols, stablecoin issuers, and derivatives protocols.

– 20 million LUNA set aside for quarterly developer rewards on Terra. Any project deemed “essential” by the community—having launched an application—will be eligible.

– 50 million LUNA designated for liquidity incentives over four years. These funds will boost initial liquidity for decentralized exchanges, stablecoins, bridges, and similar protocols built on Terra.

– 5 million LUNA reserved for users to encourage them to utilize bridges, decentralized applications, and mint NFTs on the platform.

Despite the proposal, LUNA’s price remains stagnant, trading around $2.4.

Chart: 1H LUNA/USDT on Binance as of 10:10 AM, 20/10/2022

Additionally, the proposal to reduce the burn tax on all Terra Classic (LUNC) transactions from 1.2% to 0.2% has been approved, due to a sharp decline in trading volume.

As reported by Coin68, the collapse of Terra in May wiped out $60 billion from the market. CEO Do Kwon proposed a blockchain "hard fork" to revert to the pre-de-peg state of May 8, effectively "rebuilding" and allocating assets to users holding LUNA and UST. Since then, the old blockchain has been rebranded as Terra Classic, along with Luna Classic (LUNC) and USTC. Despite the turmoil, CEO Do Kwon still faces a manhunt by authorities, although he has repeatedly stated he is not fleeing and is ready to cooperate.

To date, the new Terra is still struggling to attract investors to its ecosystem. The Total Value Locked (TVL)—a key DeFi metric measuring the value accumulated by a protocol from investors—currently stands at $40 million, down from its previous peak of tens of billions, according to DeFiLlama.