One possible proposal could focus on creating a credit card that allows users to earn rewards in Terra-based cryptocurrencies, such as Lunc or UST. The rewards could be structured in a way that encourages users to hold and stake their Terra-based assets, thus supporting the stability of the ecosystem. For example, users could earn a higher reward rate if they stake their rewards in a Terra-based savings account, or if they use their rewards to purchase Terra-based products or services.
To incentivize users to adopt the credit card, it could be designed with user-friendly features, such as low fees, cashback rewards, and exclusive benefits for Terra ecosystem members. For example, the credit card could offer discounts on Terra-based products or services, priority access to Terra-based dApps or events, or free access to educational resources on Terra’s blockchain technology.
To fund the rewards and benefits, a portion of the transaction fees generated by the credit card could be used to purchase and burn Terra-based assets. This would create a deflationary effect, reducing the overall supply of Terra-based assets and potentially increasing their value over time. This could be a powerful incentive for users to adopt the credit card and support the Terra ecosystem.
When proposing a credit card for the Terra ecosystem, it’s important to consider the regulatory and compliance requirements for operating a payment network. This could include obtaining licenses, implementing anti-money laundering (AML) and know-your-customer (KYC) procedures, and complying with data protection regulations. It’s also important to consider the technical infrastructure required to support the credit card, such as integrating with existing payment networks and securing user data.
Overall, a credit card for the Terra ecosystem could be a powerful tool for increasing adoption and support for Terra-based assets. By structuring rewards and benefits in a way that incentivizes users to hold and stake their Terra-based assets, and by using a portion of transaction fees to burn Terra-based assets, the credit card could help support the long-term stability and growth of the Terra ecosystem.
A guy On reddit also comment below :
It might work better as a cash card like Cro. You by Lunc onto your card, thus burning Lunc. Spend money from card as a normal cash card, thus burning Lunc. And as you say, gain Lunc as a rewards directly into your staking account. You get a higher rate on all your stake coins for doing so, but the rewards have to stay stacked for a minimum of the 21 day unstaking term.