This was written when I was writing the LUNC Community Custodian proposal, so this goes along with that and I haven’t quite finished it yet, but I am sharing it because I have observed that the community is interested in knowing what we are doing about burns. Well, this is one of the major plans I have with burns, though, this is not the only plan since my auto trading bot also burns LUNC directly.
I will prepare the budget for this and include it in the LUNC Community Custodian plan. For now, we can have a discussion around the ideas I have mentioned in it. It’s nothing difficult to do, but in order for us to do this, the LUNC Community Custodian needs to be made, otherwise we do not have a responsible entity who will take care of this.
I will move with this, along with the LUNC Community Custodian prop in a single prop, but I will keep the information separate since this will also be a large document eventually.
The reason that I did not move with this earlier (even though this was written in December) is because I had believed in the Terra Grants Foundation, and that they would be able to fund more applications on the chain since we had funded them to do just that. Months later, I do not see any progress on that front and we are seriously lagging behind as far as onboarding new dApps onto the platform is concerned. TerraPort and TerraCasino are not being funded or supported by the community even though they are performing well and doing their work properly. Such projects should be funded and other projects are also welcome to apply to the funds mentioned in this document after this proposal passes. This would hopefully be a welcome change for the entire community.
I am not re-introducing myself here since I have already done that twice in my other two proposals. Please go through the concerned sections in those documents and I would encourage the reader to also go through the LUNC Community Custodian proposal, since The BAD Fund will be a sub-proposal to that in the final proposal.
Almost all blockchains have a mechanism in place in which rewards/incentives for developing on the chain are distributed to participants from time to time. This helps keep the development on the chain active and the competition healthy.
The proposition is to create such a fund, which will incentivize and keep participating development teams engaged in activities (on the chain) all year round. Activities will be done on a recurring basis, until the fund is exhausted. The fund may also be replenished from donations from supporters and other patrons.
The central objective of The BAD Fund is to incentivize all builders who are working on dApps which helps the burns of both $LUNC and $USTC. These dApps may be related to L1 or L2 development and both shall be considered for eligibility to apply for the fund.
Activities of The BAD Fund
(will include, but not be limited to the following)
- Yearly Hackathon Event
- Monthly Coding Challenge
- Bug Bounty Rewards
- Small to Medium-scale Project Funding
- Influencer Incentives & Rewards
- Validator Voting Incentives & Rewards
- Online & Offline Marketing Activities/Campaigns
The LUNC Community Custodian will provide an independent vetting process based on which, we will be distributing rewards, funding projects, and incentivizing the chain. The entire process will be handled by the Custodian and funds will be distributed from the Custodian wallet reserves to eligible individuals/teams.
Yearly Hackathon Event, Monthly Coding Challenge & Bug Bounty Rewards
- A yearly hackathon event will be created & promoted by The BAD Fund in which individuals/teams who are working on projects which directly concern burns of both $LUNC and $USTC will participate in a challenge to compete against other individuals/teams for a bounty/reward for the best project in terms of innovation, usability, coding standards and overall project design
- Individuals/teams will participate in monthly coding challenges like smaller dApps which can be made within 10-20 days. dApps which directly concern burns of both $LUNC and $USTC will be given preference and monthly rewards in $LUNC and $USTC
- Discovering and mitigating bugs are a perpetual process and many individual contributors also contribute to this process in Open Source software. Thus, we shall create and promote a bug bounty program (currently available on Ethereum, Solana, etc.) exclusively for the Terra Luna Classic blockchain. Rewards for finding bugs will range from $5-1,000 depending upon the type of bug identified
Small to Medium-scale Project Funding
- Individuals/teams who are working on projects which directly concern burns of both $LUNC and $USTC will be given preference
- We will be funding projects within a budget range of $10,000-100,000 USD
- The BAD Fund will not only fund the projects, but will provide additional services with the partnership of the LUNC Community Guardian. Examples of such additional services include (but not limited to) project cost estimation, doxxing, licensing, etc.
Online & Offline Marketing Activities/Campaigns
- Burn-focused marketing online/offline campaigns will be promoted by The BAD Fund to sensitize the community about Burn dApps
- A Physical Burn Ticker will be constructed by engineers at any one location in the world to promote the Terra Luna Classic community and $LUNC & $USTC Burns
- Each and every project funded by The BAD Fund will also be marketed by us on all online and offline media with custom campaigns designed for funded projects
Influencer & Validator Voting Incentives & Rewards
- Influencers must promote and educate the community about recent proposals being voted on the Governance portal, and the Terra Luna Classic blockchain at large. Voting rewards will be distributed to a registered list of influencers after every 3 non-spam proposals have ended. Rewards will range from $1-$100 USD at most in individual reward value
- Every validator who votes on non-spam proposals will have a chance to win up to $100 on every vote. Validator voting rewards will be calculated using a formula derived from the voting power, number of votes participated in and activity on the Agora discussion & Governance portal. The validator voting rewards will be distributed from a rewards pool maintained by the Community Custodian
*Eligibility & Rewards criteria for various events/activities/campaigns will be determined based on the event/activity/campaign category at the time of the event