Introduction
This is a community spend proposal for the reimbursement of lost fee’s during the period of Sept 21 - Sept 28th. On September 21st, the 1.2% tax burn was activated on Luna Classic. Transactions on testnet were successful, but transactions on columbus-5 had gas computations straddling the border of success and failure. Thus, some transactions failed and the tax was levied while the transaction did not go through.
Dedicated work by StrathCole has identified the transactions that failed from Sept 21 to Sept 28th (when the station wallet was fixed). The following shows the number of transactions that failed.
“txs” : {
“/cosmos.authz.v1beta1.MsgExec” : 4,
“/cosmos.bank.v1beta1.MsgSend” : 10460,
“/cosmos.distribution.v1beta1.MsgWithdrawDelegatorReward” : 1,
“/cosmos.gov.v1beta1.MsgSubmitProposal” : 6,
“/cosmos.staking.v1beta1.MsgDelegate” : 2,
“/ibc.applications.transfer.v1.MsgTransfer” : 1,
“/terra.wasm.v1beta1.MsgExecuteContract” : 453,
“sum” : 10927
}
Reimbursement Details
We are requesting the total amount of incorrect taxes charged be reimbursed via a community pool spend to the users that lost funds during this time; the total reimbursement is 295M LUNC.
There are 9 wallets with over 5M LUNC in reimbursement that total approximately 165M of the 295M reimbursement. Several of these wallets have been identified as CEX wallets (coinspot, crypto.com, etc), and others are suspected to be unidentified CEX wallets. Simply sending reimbursements to these wallets is not advised, and thus we will make reasonable efforts to contact the CEXs to figure out the best way to reimburse them. If these efforts fail, we will simply return these funds to the community pool.
Additionally, there are several hundred wallets that have reimbursements of under 10 LUNC. Due to the cost of transactions and tax fees, any wallet that lost less than 10 LUNC will not be reimbursed. For the remaining wallets between 5M and 10 LUNC (2,214 wallets), reimbursements (sans gas and 0.2% tax costs) will be processed as part of this proposal.
The code to process the reimbursements has been written and can be seen in the following github repository,
There were two methods explored for this distribution. The first is a smart contract forked from dfunk’s 4080 distribution proposal. While this was our first approach, it did not give the flexibility we wanted in the reimbursement process.
The second method is the solution we will use - a python script located here,
A test of the distribution can be seen in the notebook on TestNet.
Distribution of the lost fees can be seen here, please note this does not apply to validator delegation fees during the September timeframe.
A previous attempt to solicit missing entries on twitter was fraught with hundreds of thousands of scam-like responses. Thus, the list scraped via chain analysis will be used as the final list. To verify the lost_fees.json list, please see the chain analysis code here.
Procedure
- Community Spend proposal of 296M LUNC to the Terra Grants Foundation Multisig (extra 1M for taxes)
- Create new send wallet for python script to use for distribution
- Send 296M to the python script wallet
- Algorithmically reimburse 2,214 wallets between 10 LUNC - 5M LUNC (~131M LUNC)
- Search for and contact users of the top 9 wallets with > 5M LUNC for manual reimbursement (~165M LUNC)
- Return any excess amount that cannot be identified back to the community pool
- Post a list of wallets and tx hashes as a final accounting, additional information will be provided for the top 9 wallets distributions (the ones over 5M).
Please share any questions, comments, and feedback.