Fund Devs With $4M of Off-Chain Community Assets

413x_45h4w · October 28, 2022, 4:47pm

PROPOSAL SUMMARY:

Reclaim possession of the Terra Classic Community Ethereum Crosschain Multisig Wallet, possessing roughly $4.16m of non-Terra assets, on behalf of the Terra Classic Community. Use those assets to fund professionalized LUNC blockchain development with robust dev + community oversight.
Replace the current owner slate with a new slate of 6 nominees, chosen on the basis of mutual respect and proof of work: Edward Kim (edk208), Tobias Andersen (Zaradar), Alex Forshaw (4lex_4sh4w_TR), Maximilian Bryan (maxb_TR), Marius Burkard (StrathCole), and Ian (PFC_Validator).
Immediately expand the MultiSig to include 3 additional members to strengthen independent oversight and community participation: Etienne (Setten), Coach Bruce (Lunc DAO), and Jack Zampolin, a Cosmos OG and leader of the Akash Network. The new MultiSig would be a 5-of-9 (minimum of 5 ‘yes’ votes required to authorize anything).
Each Signer will be paid USD $5,000 per month. Each new Signer’s obligations will include helping to create & iterate upon a 12-month community-driven LUNC development roadmap, soliciting bids from the community to execute on pieces of said roadmap, evaluating the qualifications and track records of bidders, voting on finalists, and monitoring their work progress to completion.
Clear failure of a Signer to execute his duties will result in his being voted off the MultiSig and replaced with a new Signer of the remaining Signers’ and the Community’s joint preference.

PROPOSAL DETAILS:

The Terra Classic Community votes to reclaim possession of the ethereum crosschain multisig wallet [0x9538D438d506Fc426dB37fb83daC2a0752A02757] (“TC Community MultiSigs”) and all assets therein. These assets’ current USD value, excluding the unknown amount of USTC available in lending-market liquidity pools, is roughly $4.16m at current prices. The multisig includes:

a) USTC stuck in lending markets (Fuse, Aave) - The majority of USTC has been withdrawn and burned already; however, a significant amount remains stuck in lending markets due to borrows. As this becomes available to withdraw the new multisig owners will withdraw and burn it.
b) gOHM: Wallet, 209.3654987 @ $2,555.69, appx. $535,073.31
c) CVX: Wallet, 201,673.50 @ $5.60, appx. $1,129,369
d) CVX: Expired Lock, 284,931.17 @ $5.60, appx. $1,595,615
e) TOKE: Staked, 45,931.29 @ $1.70, appx. $78,083
f) TOKE: Claimable, 16,098.61 @ $1.70, appx. $27,368
g) cvxCRV: Claimable on Convex, 70,871.36 @ $0.93, appx. $65,910
h) cvxCRV: Llama Airforce Union, 183,637 @ $0.93, $170,782
i) cvxFXS: Claimable on Convex, 457.86 @ $6.01, appx. $2,747
j) FXS: Claimable on Votium, 76,903.56 @ $6.01, appx. $461,418
The 6 current owners of the TC Community MultiSigs transfer their keys over to a new slate of TC Community dev/quant proof-of-work leaders: Edward Kim (@edk208), Tobias Andersen (@ZaradarTR), Alex Forshaw (@4lex_4sh4w_TR), Maximilian Bryan (@maxbry_TR), Marius Burkard (StrathCole), and Ian (@PFC_Validator).
The 6 New Owners immediately expand the MultiSig to include 3 additional Signers: Etienne (Setten), ‘Coach Bruce’ (LuncDAO), and Jack Zampolin, a major leader within the wider Cosmos community
The compensation for a MultiSig Signer role will be USD $5k per month
The duties for a MultiSig Signer role will include building out a 12-month community-driven roadmap of LUNC dev deliverables, vetting work proposals, evaluating proposer teams, funding the most qualified bids to meet community requests, and overseeing the execution of said work.

a) All work proposals to the MultiSig must be made public, along with funding votes by the MultiSig.
b) Signers are free to submit their own bids for specific work deliverables, like other bidders, with the expectation that they would recuse themselves from votes pitting themselves against other community bids.
c) The MultiSig will fund L1 (LUNC chain) maintenance and upgrades only. It will not fund any dApp development or other activity outside the ownership of LUNC tokenholders.
Any USTC that becomes available in lending pools will be extracted and burned on-chain.
The MultiSig owners provide a summary of itemized expenses to the Community, including all relevant on-chain transactions, approximately 1x per month.
If any Multisig owner believes he is no longer able to carry out his delegated duties, s/he commits to resign. Regardless, negligence or failure to carry out said duties will result in that Signer’s removal from the Multisig and replacement after dialogue between individual remaining Signers as well as the broader community, with a mutually acceptable replacement.
If and when the Community agrees upon a more sustainable governance framework balancing scalability, decentralization and accountability, the balance of the MultiSig will be returned to Community possession in the most practical way possible and the MultiSig owners will relinquish their salaries, compensation, and associated duties of oversight, budgeting, and L1 dev management.
Beyond the proposed salary, the Community commits to fund the legal defense of any individual on the MultiSig for any LUNC-related litigation s/he may face.

Special thanks to Jagmot (Allnodes) and Eric Bravick (END-Labs, The Lifted Initiative) for their additional input.

BACKGROUND

On September 20, 2022, Alex Forshaw initiated a conversation over Twitter Messenger with Do Kwon on a wide range of issues relevant to the Terra Classic community. (Kwon and Forshaw had no prior contact; the conversation was possible only because Kwon and Forshaw followed each other on Twitter, and could thus exchange Twitter direct messages, starting around that time.) Forshaw raised the question of how known and unknown off-chain Terra Classic community assets, starting with the Luna Foundation Guard (LFG), could be utilized in a way that better benefited the LUNC community. Kwon expressed skepticism that the present course of LFG asset disposition could be altered in any way. Kwon added, “[I] think the work you guys are doing is amazing for the community and hope you guys continue to fight the good fight.”

Over the following weeks, amid other conversations, Kwon expressed unconditional support for the LUNC community’s efforts several more times, without ever exploring a quid pro quo or any other form of compensation for himself, TFL, or any other Kwon-related party. For example, on Oct. 13th, Kwon said, “Saw some chatter recently about wanting to move off TFL infrastructure. Let us know if and when you want to shut it down. Also happy to keep going. Happy to do whatever’s best.” Forshaw said he felt that it would be best if TFL paid for infrastructure in the near term, and opined that the community had a time window of several months to get its act together, pay devs on a predictable basis, and find a way to turn LUNC’s user momentum into something more durable.

On October 19th, Kwon notified Forshaw of the existence of several community MultiSig wallets holding assets that rightfully belonged to the Terra Classic community, which were clearly not part of the Luna Foundation Guard or TFL. Kwon said that if the Terra Classic community passed a proposal to a) claim those wallets’ assets for dev funding, b) nominate a new slate of MultiSig owners chosen on the basis of prior proof-of-technical-work in reviving LUNC & and mutual respect, and c) show how the funds would be used to fund LUNC developers working on the LUNC community’s behalf, Kwon believed the current signers of those wallets would be willing to act according to the community’s wishes and transfer the Multisig’s ownership to the new slate of Terra Classic Community nominees.

Forshaw began speaking with Zonny (@ItsAlwaysZonny), who represented the prior MultiSig owners, and began drafting up terms.

After looking up the wallets and finding assurance that the assets were legally untainted, Forshaw consulted Ed Kim about the idea, suggesting that Ed nominate four other dev/quants whom Ed thought best, so that the Terra Classic devquant leadership could be commercially incentivized to work together as a team, build positive team momentum, and be able to hire meaningful outside help where needed. Ed agreed and suggested Andersen, Forshaw, Bryan, and either Marventus or, if Marventus declined, StrathCole. Forshaw readily agreed, and next compared notes with Max Bryan, whose list was the same; then with Andersen, whose list was also the same, but did not suggest StrathCole as an alternate. Andersen added that he felt no more than 2 members should be current Terra Rebels members, so that Terra Rebels did not control the MultiSig. Forshaw strongly agreed. Marventus ultimately declined the offer, citing exhaustion with Terra Classic politics. StrathCole thus inherited Marventus’s place in the lineup.

Do Kwon, when asked for his opinion of an early draft of the proposal, replied, “No objections; just trying to be helpful. You’ll have to talk to them [the 6 current Signers], it’s out of my hands.” Kwon played no role in subsequent re-drafts of the original proposal.

As the members of the slate had reviewed the document and came to mutual agreement on all items, the drafts were also shared with @ItsAlwaysZonny, who spoke on behalf of the current MultiSig owners. Zonny only suggested that the tokens be held for yield instead of liquidated (i.e., stake the tokens for rewards) as the liquidation impact would be significant, there was no reason to liquidate a large percentage of the holdings immediately, and the tokens possessed significant strategic value and yield potential.

SIGNER SELECTION PROCESS

Members of the MultiSig were mutually selected based on several key criteria:

Significant, consistent proof of technical work towards resuscitating the LUNC chain
Mutual respect and trust
A track record of working together productively, without being afraid to stand up for what they thought was right
A meaningful profile in the LUNC community

RESULTS OF VOTING

YES - Delegate control of ~$4.15M of community-owned Ethereum assets to an expanded 9-person MultiSig committee of Kim, Andersen, Forshaw, Bryan, StrathCole, Etienne, Ian, Coach Bruce, and Jack Zampolin to manage on behalf of the Terra Classic Community. This shows that the LUNC Community accepts a need for the existing core dev/quant team to be paid for their work, and trusts their judgment to delegate work to other devs and community members who submit credible Proposals to create additional proof of work for the LUNC Community. Extract and burn all USTC as it becomes available in the Fuse and Aave lending pools.

NO - Reject the proposed multisig ownership transfer to the new ownership slate. This shows that the LUNC Community does not trust the proposed slate of 9 to manage community funds.

Note: This proposal would be separate from, and concurrent with, Edward Kim’s grant program (proposal 8813), in which Kim would oversee grants across a wider range of potential initiatives, including specific dApp development teams.

Signed,

Alex Forshaw
Edward Kim

Co-signed,

Maximilian Bryan
Coach Bruce
Ian (PFC_Validator)
Marius Burkard (StrathCole)

Aysul88 · October 28, 2022, 5:01pm

Thanks and is necessary step.

Raindrops · October 28, 2022, 5:08pm

Super awesome

Pholuna · October 28, 2022, 5:19pm

Amazing

selmo_TV · October 28, 2022, 5:31pm

#2 - NO THANKS

Marko · October 28, 2022, 5:35pm

Yeaaaahhh Let’s Go

Arnoud · October 28, 2022, 5:36pm

Great inititive, great work.

Abdoelz · October 28, 2022, 5:42pm

You made my weekend…many thanks. My full support.

Moodytota · October 28, 2022, 5:49pm

My only concern is with Coach Bruce, He needs to be professional and calm since I am following him on twitter for a while. He makes some moonboys claims frequently. He is a huge part of LUNC as he hold a big chunk of voting power but that hold a huge responsibility of how the community should look like to others in regards to professionalism.

I hope that LUNC DAO takes into consideration that so many people hopes rely on this recovery.

Best of luck to all.

Great work Alex.

Mgreul · October 28, 2022, 6:25pm

No on this one. If it is community funds, it should be transferred to the community. It can go through the same process as other proposals that need funding.

Not in favor of giving $4mm to 9 people without a proposal of what the money is going to be used for, no matter who the proposed 9 are.

Username2030 · October 28, 2022, 6:32pm

Great proposal, great team that is going to control this funds, wouldnt change anything. Please dont add any moonboy lambo to this team.

Mikorist · October 28, 2022, 6:36pm

So Do Kwon has hidden MultiSig wallets. Thanks for the information. Interpol…

Adrian_Arrechea · October 28, 2022, 6:37pm

I generally agree with the proposal.
I prefer six “yes” votes to authorize anything. We need a broad consensus because the responsibility is huge and the amount the funds you all will manage too.
In the point number ten why can not the funds be taken from the Multisig?

btoterrabuio · October 28, 2022, 6:55pm

I think we need more extensive feedback who are there guys and if they have knowledgement to manage the money in benefits of the community. We need more information who are theses guys.
I know LUNC DAO gives a lots of help and money for the burn and I compliment him for this, but who is he? I do not want to give money for an anonimus random joker guy in twitter. He is joking all the time some people including me think he could be Do Kwon.
We (as as retail investors) did not any idea that Do Kwon was involved with this in any issue involving LUNC or Terra rebels/Alex neither know that you have contact with him. The project have a lack of transparency and this annoys me because at least for my part I do not want to get envolved with him.

Akujiro · October 28, 2022, 7:06pm

Thanks for all your hard work!

We desperately need the money and I can’t think of better people watching over it!

Suleyman_Sen · October 28, 2022, 7:50pm

4 miyon dolarlik ETH sernayeyi kontrol etmek karsiliginda 5000 dolar her kisi icin ayda 45 bin dolar yilda 500 bin dolar peki lunc basarisini istiyorsaniz neden 5000 dolar Zaten validatorler asil cuzdan sahipleri her burinde zaten milyarlarca qdet var kimse kazanmayacak kendileri kazanak herkese bol sans ven cikiyorum.Clasy gibi bunlarda o paranin pesinde bur gun birisi tum cuzdani bosattiginda sucu kimse ustlenmeyecek merak etmeyin

Dodgydogz · October 28, 2022, 8:18pm

Could I please ask.

Who out of the 9 members listed were or were not previous employees, contractors or beneficiaries in any way to TFL prior to and following May of this year?

If they were any of the above, in what capacity did each contribute to TFL?

What are the names of the 9 members listed and a method of contact?

How will governance, reports and insights into this activity be reported to the community for oversight?

If we are truly a decentralised entity, these details should be a minimum pre-curser to any governance proposal. Especially one that provides regular payments or large irregular payments from community funds. Be them realised or not.

Accountability and transparency are the keys to the success of this community from here on in.

There are a few on-chain and project wallets that Mr Zon was signatory for. I know one was used for a large burn early on. Thank you Mr Zon! Could any of the other wallets be utilised for the good of the community?

Thank you

Moodytota · October 28, 2022, 9:29pm

I would love to see Vegas in this council.

Vegas · October 28, 2022, 9:33pm

With all respect,I dont agree with this proposal ,it goes against the idea of decentralised blockchain. Instead I propose for that founds to be swapped for lunc and then sent to the community pool(this way is in no hands control,expect the community). And than we can use the mechanism that is already in place,apply for a grant on the governace system.

FatMan · October 28, 2022, 9:44pm

The longer I consider this, the more confused I get. Wouldn’t the obvious solution be to use the Ethereum assets to buy LUNC on the open market and send it to the community pool? This adds buy pressure to LUNC and allows project proposals to adhere to the tried and tested on-chain governance vote method.

The decision to specifically cordon off $4m into the hands of a centralized committee seems irrational until you look at the salaries involved. $60k/year per signer - $540k/year drained from the pool (over 10% of available assets). If the funds were sent to the community pool for standard on-chain governance voting, the people involved in creating this proposal would not be getting these massive full-time salaries for relatively little work.

Even if you overlook the obvious cash grab nature of the proposal, there’s still so much bloat, with three people on the multisig who have barely contributed, at least to my knowledge. People like LUNC DAO and Ed somewhat make sense, but who is Max B? StrathCole? The drain is absolutely massive and it doesn’t need to be.

It’s a pretty well-executed cash grab on Alex’s part and I respect the hustle, but it’s hard not to call it out for what it is.