Before the spectacular crash of the Terra blockchain around mid-2022, it was once a thriving blockchain project, with its ecosystem tokens standing among the largest cryptocurrencies by market capitalization.
Terra 2.0 (LUNA) emerged as a consequence of the de-pegging of USTC but the newly designed blockchain ecosystem has not flourished as envisaged. To this end, the team rolled out an amended ecosystem expansion program dubbed Terra Expedition.
Terra Expedition
The Terra Expedition is said to be a revised iteration of the Developer Mining Program and Developer Alignment Program earlier disclosed at the launch of Terra 2.0. “This revised proposal aims to better align incentives across the ecosystem and focus on attracting developers, onboarding users, and promoting deep liquidity,” part of the proposal said.
It’s worth noting that the Terra Expedition is designed to be a 4-year growth-based program for the Terra ecosystem. The three main objectives of the Terra 2.0 ecosystem expansion program include incentivizing developers to build on the Terra blockchain, deepening liquidity on Terra, and onboarding users to Terra. Funding of the program would be made possible using 9.5% of the total supply of LUNA.
While several members of the Terra community have dropped their comments on the developmental plan, Terra founder Do Kwon has largely countered the points outlined in the Terra Expedition plan released in October. In turn, he spelled out a different approach that could be adopted to make the once-thriving Terra ecosystem bloom again.
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Do Kwon’s Counter Thoughts on Terra Expedition
In response, the Terra creator dropped his opinions on the planned initiative in a Thursday comment, stating why the Expedition is flawed. He said, “I believe the expedition proposal is a subpar spend of the community pool, and I urge the community to consider better alternatives (including doing nothing).”
🛠️ Some thoughts on expedition: https://t.co/Rf6dtufqKg
— Do Kwon 🌕 (@stablekwon) November 3, 2022
In buttressing his opinion, Do Kwon highlighted the following; inorganic developer incentives suggested in the proposal are usually short-lived, nothing-at-stake committees are poor capital allocation, and proposed spending efficiency is low. Lastly, he said “developers won’t build on Terra unless there is a compelling reason. They will if there is one.”
Speaking on the proposed spending inefficiency, Kwon noted that the Terra expedition proposes to spend 1 dollar to achieve 1 dollar in TVL, citing that the plan is not very attractive. Moreso, Do Kwon outlined alternative ways to spend the community pool and also achieve interchain security.
He said, “the community pool can be deployed to incentivize adoption of Luna alliance staking (subsidize LSD yield) over other staking assets. Over time, the goal should be to have Luna be one of the most widely used assets for interchain security across the cosmos.”
“I think by solving security / tooling entry costs & solving for user fragmentation, it will be more attractive to launch blockchains vs launching smart contracts for a wide array of use cases,” he added.
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