Cephii1, a Terra community member, proposes on behalf of the Terra community members. The suggestion is for a mechanism of distributing the 0.5 percent emergency LUNA allocation.
According to the user, the suggestion was made on behalf of community members, validators, TFL, and others. The initiative also aims to improve the Ecosystem’s Revival Plan 2.
The rising discussion over how to distribute the 0.5 percent emergency LUNA properly opened the way for the plan to grant a 10% LUNA supply to developers. However, the LUNA team did not specify how the emergency fund would be allocated.
The Terra community lays down the proposal
The user established the criteria for who is qualified to receive the emergency fund after gathering recommendations from community members:
- Projects in LUNA Classic that achieved product-market fit and TVL.
- Projects that began on LUNA Classic and achieved product-market fit but have yet to produce verifiable results TVL.
- Projects in the pre-and post-launch phases that have not yet established product-market fit (pre-PMF)
The plan first focused on smaller initiatives, outlining the minimum amount needed for minor projects as well as the number of projects that should be funded.
According to the poll, the projects would cost $100-300k for six months of runway. In addition, the community chose over 50 projects that would be eligible for it.
The concept called for providing $100,000 to $300,000 in LUNA to eligible pre-PMF teams. The eligibility and allocations would be decided by a council of long-standing Terra community members, including Karma, Panterra0x, Cephii, Seb, and GJ.
In addition, the user proposed that the projects Coinhall, Terrascope, Setten, SCV, Terra One, Random Earth, Knowhere, Leap Wallet, and TFM receive an additional $500k-$1M in LUNA. This is due to the added value of infrastructure and tooling.
To sum up the emergency fund’s total of 5 million LUNA:
- 2.5 million should be allocated among projects that debuted on Terra Classic and established product-market fit, as well as TVL (PMF and TVL).
- One million LUNA should be awarded to ventures that debuted on Terra Classic and achieved product-market fit but no demonstrable TVL (PMF but any TVL).
- 1.5 million LUNA should be spent on pre-and post-launch measures that failed to create product-market fit (pre-PMF).