Edward Kim proposes a grants program to promote chain utility and ensure better transparency with community pool distribution.
In a tweet today, Terra core developer Edward Kim shared a proposal to launch a Terra Classic grants program to ensure efficient and transparent distribution of community pool funds.
I am proposing a Terra Classic grants program to attract new utility to the chain while providing accountability for community spending. Please share your thoughts on this Agora post. https://t.co/etR5fMb8eV
— Edward Kim (@edk208) October 17, 2022
Kim’s proposal comes as he expects proposal 5234 to pass the community vote. Notably, the proposal requests that the 1.2% tax burn parameter be reduced to 0.2%, with 10% of the tax obtained sent to the community pool to fund development activities.
The proposal has recently gained good traction and formed the basis of many discussions within the community. Kim, who originally pushed the 1.2% tax parameter as reported by The Crypto Basic, has opted to vote in favor of the new proposal explaining his rationale in a blog post. Notably, the leading centralized crypto exchange KuCoin has also supported the proposal.
As per Kim’s latest proposal, the grant program team will work to identify deficiencies in the Terra Classic chain. Notably, after identifying these issues, requests with cash incentives will be made for developers or whatever talent is required to submit proposals to tackle the specified deficiency.
Independent reviewers will be brought in to review the proposals to eliminate potential conflicts of interest. At the end of the proposal review process, the data and reviewer recommendations will be published as a proposal requesting the community to ultimately approve the allocation of the funds for the project to a designated multisig address.
Notably, the grant foundation will make payments to grantees from the address per milestone.
To this end, Kim requests $68,000 to kick off and cover the running expenses of the grant program for the next 6 months. It bears mentioning that the Terra community pool currently holds about 407 million LUNC worth about $120k at exchange rates.
So far, the proposal by Kim has received largely positive reviews, as it promises to create a transparent system that incentives development and the discovery of new talent. With affiliations to the Terra Rebels and TerracVita, Kim has promised to recuse himself from grants involving both parties.
Seems fair and certainly adds those much needed checks and balances. #LUNC #LUNCCOMUNNITY https://t.co/9MUo7dAioa
— RyanCryptoMD (@RyanCryptoMD) October 17, 2022
The Terra Classic chain recently ranked 60th among DeFi chains with just over $12 million in total value locked (TVL). The community hopes to rebuild the chain and regain its previous glory when it was just behind Ethereum with over $30 billion in TVL. However, the current lack of utility and technological parity with competing chains stands in its way.
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