TFL holdings and Project Dawn unlock

Hi LUNAtics,

Wondering if these 2 subjects could need some community discussion:


Terraform Labs (TFL) holds a significant amount of Luna (~472M). This Luna is non-circulating and is for instance being used to pay employees, stake through the Terra Delegation Program, community pool and to fund Project Dawn (3M unlock per month).

At the moment that 3M Luna per month for Project Dawn is actually the only notable unlock that takes place. And it’s peanuts compared to the amounts of Luna that’s being burned everyday. So it’s not that we have to worry about anything, but it might be worth to discuss it at least.

Because it is not entirely clear who owns what and how much Luna is needed in the future. It might be a good idea to get some extra clarity on the non-circulating supply and it’s purpose. I think it’s good to have a stability reserve, pay employees what they deserve (and more) and maybe have still unvested tokens for VC’s stored.

And of course there’s Project Armageddon, which will effectively burn the TFL holdings when needed.
But what if a large portion of that Luna might not even be needed right know or in the future?

For example we could slowly start to burn a ‘X’ amount every month (sending to a burner wallet address). That would strengthen decentralization and remove potential ‘trust issues’.


In addition to the above, 3M Luna is released every month to fund Project Dawn. When TFL announced this new project in september the Luna price was around $25, which would result in a monthly budget of $75M.

As of today the price of Luna has risen to roughly $100, which results in a massive $300M budget per month. What happens to funds that aren’t needed that month? Maybe it’s a good idea to lower this unlock to 1M Luna per month.


I know there are more important things that are being worked on but maybe these are things that can be discussed? :eyes:

Sorry for the long story :sweat_smile:

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For project Dawn, why not burn the 3m Luna to UST and give those as grants, instead of just handing out luna.

Also agree at these prices, 3m luna seems excessive, but maybe TFL can give us a better break down where those luna are being allocated.

Would love a project dawn update from TFL.

That said, I think part of the error in denominating this in USD in your review is that some of the commitments satisfied by that 3 mil Luna per month are likely denominated in Luna.

For example, employee contracts and vesting may be included, and seems likely to be Luna commitments. No matter how much USD Luna is worth, 1 Luna = 1 Luna.

It wasn’t explicit in the Medium post, but Do later provided a more specific breakdown of the 3 mil in a Telegram chat.


So, 1.8 mil monthly meets employee obligations. That portion seems most likely to be largely denominated in Luna.