Terra Ecosystem Revival Plan 2 [PASSED GOV]

This will be a living document to coordinate the new network launch with the community. Details are subject to change.

This document has been edited in conjunction with input from the Terra Builders Alliance, and has endorsement of both the TBA and TFL.

Exchange integration, dapp migration, and validator guides have been added to “Technical Details”.

Disclaimer : Please be aware that due to technical constraints, it is not possible to include all UST and LUNA holdings on Terra and other chains in the snapshots mentioned. Assets that may not be included:

  • UST or LUNA bridged off of Terra
  • Users with bridged UST or LUNA who would like to be included in the post-attack snapshot need to bridge back to Terra before the snapshot is taken.
  • UST or LUNA on Terra protocols that cannot be easily identified
  • All protocols listed on DeFi Llama here (Terra TVL - DefiLlama) will be covered, in addition to a few others that are known.
  • UST or LUNA on CW3 multi-sig contracts
  • Most UST and LUNA in CW3 multi-sig contracts will be accounted for, but there could be edge cases.

==== Amendment #1 ====

Some details of the token allocation have been modified in the proposal to accommodate community feedback - changes and reasoning outlined here. The proposal body has also been edited to reflect the changes in the amendment. If you’ve already voted and disagree with the changes, please vote “No” - you have 5 more days to do so.

  • Pre-attack Luna holders distribution - for all holders with a snapshot balance of 10k Luna or less, 30% unlocked at genesis; 70% vested over 2 years thereafter with 6 mnth cliff. This is to ensure that small Luna holders have similar initial liquidity profiles. This would cover 99.81% of Luna wallets while only representing 6.45% of total Luna at the Pre-attack snapshot.
  • Post-attack UST holders distribution - 20% → 15%. This is to ensure that depeg related allocation is on par with the original stakeholder (pre-attack Luna) allocation. The 5% saved goes to the community pool.
  • Increase initial float: all initial float allocations modified from 15% → 30% to increase initial token float.

=====================

Motivation

While UST has been the central narrative of Terra’s growth story over the last year, the distribution of UST has led to the development of one of the strongest developer ecosystems in crypto.

The Terra ecosystem and its community are worth preserving.

  • Terra’s app ecosystem contains hundreds of developers working on everything from defi to fungible labor markets, state-of-the-art infrastructure and community experience
  • Terra Station has a large install base, with million+ users across the world
  • Although distressed, strong brand recognition and a name that almost everyone in the world will have heard about

$UST peg failure is Terra’s DAO hack moment - a chance to rise up anew from the ashes.

Summary

  • Create a new Terra chain without the algorithmic stablecoin. The old chain to be called Terra Classic (token Luna Classic - LUNC), and the new chain to be called Terra (token Luna - LUNA)
  • Luna to be airdropped across Luna Classic stakers, Luna Classic holders, residual UST holders, and essential app developers of Terra Classic.
  • TFL’s wallet (terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6) will be removed in the whitelist for the airdrop, making Terra a fully community owned chain
  • Allocate a large portion of the token distribution in 1) providing emergency runway for existing Terra dapp developers 2) align interest of devs with the long term success of the ecosystem
  • Network security to be incentivized with token inflation. Target staking rewards of 7% p.a.

Developer Mining Program

There are essential apps that must exist in any web3 ecosystem to be viable:

  • Infrastructure - Setten
  • Dex - Astroport, Loop, Terraswap, Pheonix
  • Explorer - Finder
  • Payments / onramp - Kado, Alice
  • Wallet - Station, Leap, Falcon
  • Lending market - Mars, Edge
  • Analytics - Coinhall, Flipside
  • Staking derivative - Stader, Lido, STEAK, PRISM
  • Launchpad - StarTerra
  • Bridges - Axelar, Wormhole
  • Stablecoins - USDT / USDC bridged over
  • NFT exchange - Randomearth, Knowhere, Oneplanet, Luart, Talis
  • Insurance - Risk Harbor
  • Structured products - Nexus, Apollo, Aperture
  • Games - UNOPND etc

… and others.

Essential app developers committing to launch on Terra will receive:

  1. Emergency allocation (0.5% of total supply): immediately after network launch to provide for runway while they build out product. Commit to returning funds if product has not been launched in 1 year.
  2. Developer Alignment Program (1.5% of total supply): Protocol teams that were live in Terra Classic divide this allocation weighted by the last 30 day TVL from Pre-attack snapshot - 1 year cliff, 3 year vesting thereafter. Accommodations will be made for apps where TVL is not applicable.
  3. Developer Mining Program (8% of total supply): Essential app developers earn a share of the mining program proceeds pro-rata to the amount of TVL every quarter for 4 years.

Essential app developers looking to join for emergency allocation should signal public support for the net network on Twitter and social channels.

Token Distribution

  • Community pool: 30%
    • Controlled by staked governance
    • 10% earmarked for developers
  • Pre-attack LUNA holders: 35%
    • All bonded / unbonding Luna, minus TFL at “Pre-attack” snapshot; staking derivatives included
    • For wallets with < 10k Luna: 30% unlocked at genesis; 70% vested over 2 years with 6mnth cliff
    • For wallets with < 1M Luna: 1 year cliff, 2 year vesting thereafter
    • For wallets with > 1M Luna: 1 year cliff, 4 year vesting thereafter
  • Pre-attack aUST holders: 10%
    • 500K whale cap - covers up to 99.7% of all holders but only 26.72% of aUST
    • 30% unlocked at genesis; 70% vested over 2 years thereafter with 6 month cliff
  • Post-attack LUNA holders: 10%
    • Staking derivatives included
    • 30% unlocked at genesis; 70% vested over 2 years thereafter with 6 month cliff
  • Post-attack UST holders: 15%
    • 30% unlocked at genesis; 70% vested over 2 years thereafter with 6 month cliff

Definitions:

  • “Pre-attack” snapshot to be taken at at Terra Classic block 7544910 (2022.05.07 22:59:37+08:00)
  • “Post-attack” snapshot to be taken at Terra Classic block 7790000 (2022.05.27 00:38:08+08:00)

All tokens locked or vesting are staked at genesis, and must be unbonded to become liquid.

Technical details

  • Exchange integration guide
  • Validator migration guide
  • Dapp migration guide
  • Chain upgrade to commence in a few hours after the Launch snapshot
  • Snapshots can change depending on development readiness
  • Vesting all vesting block by block
  • Terra Core to have the oracle, treasury, market modules removed - no UST
  • Luna eligibility includes Luna, bonded Luna, unbonding Luna, and staking derivatives

Roles & responsibilities

  • TFL (previously maintained mantle, station, finder, Terra Core) to prepare core public infrastructure, wallets, genfile, release binary for the launch
  • Validators (to volunteer) to declare gentx and coordinate launch shortly after the launch snapshot
  • Community leaders looking to provide oversight over the essential dev program should form a multisig to oversee the essential dev allocation & act as a steering committee for the new chain

Timeline

  • 05/17 - Announcement out
  • 05/18 - Governance proposal out
  • 05/21 - Terra Core release is cut, network launch instructions made available for validators
  • 05/25 - Essential app developer registration completed
  • 05/27 - Genesis file created from final launch snapshot
  • 5/27 ~ Network launch
548 Likes
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Reserving this spot for a reply after reading.

372 Likes

no one wants a fork. just burn the current LUNA and fix the current algorithm to get back UST peg

1619 Likes

We want an AMA with you :person_shrugging:

194 Likes

Great work!

50 Likes

What will happen to the people who hold on exchanges?

539 Likes

What. The. F…

219 Likes

reserved

16 Likes

Spot reserve

13 Likes

Reserving this spot

16 Likes

Just plain bad

271 Likes

What happens to tokens from dapps like Astroport, Mars, Mirror etc?

Do we sell and hold UST in preparation for this fork? Or will these tokens be ported over to the new fork?

I assume they’ll be ported over but a confirmation would be great.

66 Likes

From FatMan: Thank you, Do. This is an interesting proposal and I’m glad the community will move forward with a new chain. Terra has some amazing infrastructure and it’s good that it won’t go to waste.

That being said, instead of airdropping new LUNA tokens to UST holders in the form of restitution and just hoping the new chain magically gains value without the stablecoin minting mechanism (the primary function that gave Terra value in the first place), could you look into deploying TFL funds to provide restitution to small UST holders as per the proposal that has gained popularity amongst the community and has been supported by Vitalik Buterin, Binance, and Justin Sun?

The reason I say this is because many lives have been affected - people have lost their savings and they would prefer to get USD back instead of LUNA tokens that may or may not ever gain meaningful value. Not to mention, rewarding UST holders at the time of the new chain (instead of pre-depeg, like you’re doing for LUNA holders) will massively reward speculators currently snapping up UST for $0.07 instead of savers who bought in for $1.

Thank you.

455 Likes

@FatMan where is UST holders in this proposal?

171 Likes

I agree that Terra is more than $UST. There should be a stable for all 180 fiat currencies. I do not want a fork. I believe 99% of the value of Terra remains in the current incarnation of the system. Viewed as a single system, Terra should have solutions for all possible conditions. A couple of naturally occurring conditions do not have a solution for them. Specifically, there was no system to deal with insolvency (i.e., Luna price < $UST) and maturity.
The insolvency case is easy to describe as we are living through it. I will not restate the current events. Now that the Luna price is below the value of UST, there should have been a mechanism to deal with that condition that allowed the instincts of the participants ( Retail, Wallstreet, Sharks, Whales, etc.) to drive the system back to the growth phase. The growth phase can be described as the continual expansion of the UST market until it reaches a steady-state or maturity. The primary drivers of the growth phase are the appreciation of the value of Luna and providing more utility cases for UST.
At maturity, the growth of UST has reached its limit due to market saturation. In this phase, the focus of Terra should be volatility reduction through derivatives and circulation. In short, you want your Luna to store value and drive the growth of the other governance tokens in the ecosystem.
I will focus on my point without touching on the decline phase, which focuses more on use cases that absorb sell pressure. The Terra ecosystem is best in class except in the previously mentioned areas. Instead of “Throwing the baby out with the bathwater,” focus on building out those neglected areas, design against inner and outer attacks on the protocol, and be transparent.

214 Likes

Reserve

8 Likes