Wednesday, November 30, 2022
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Terra Classic Dev Shares New Proposal That Suggests Burning of $4.16 Million Worth of LUNC

As the debate regarding the utilization of the Terra Classic community funds prevails, Alex Forshaw, a popular member of the LUNC community has dropped a fresh proposal. This development comes after his first proposition to make the multisig non-Terra assets be managed off-chain with the aid of six trustees was widely contested.

In a medium post, Alex Forshaw has outlined new approaches toward the handling of the recently discovered $4.16 million worth of assets held in an Ethereum cross-chain multisig wallet. An unknown amount of TerraClassicUSD (USTC) is also contained in the wallet but linked to lending-market liquidity pools. 

Given the conclusion that an off-chain multisig is out of the LUNC community’s control, the developer suggested that all the assets in the multisig wallet should be burned. He said all the non-Terra assets in the multisig wallet should be converted to wLUNC, and then bridged to the LUNC chain’s burn address. That way, LUNC worth about $4.16 million would be burned. 

Additionally, he suggested that the same burn mandate be applied to whatever wUSTC can be extracted from the multisig wallet. Adopting the approach, the Terra Classic community would be assured of total control of everything, Alex Forshaw claimed. 

Following that some members previously suggested for the signer roles have rejected the job, Alex wrote, “whomever the community nominates to control the current Multisig should not be from the United States. They should be doxxed individuals from the UK or another jurisdiction which has a) widely respected legal systems which also have “loser-pays” penalties for frivolous lawsuits and b) severe penalties for erroneous libel/defamation.”

“The nominees should also be from diverse, even mutually hating, Terra factions to ensure accountability, and shouldn’t be paid for this particular work, since it’s extremely straightforward,” he added

Furthermore, the Terra Classic developer suggested that about $2 million worth of LUNC be minted into an on-chain multisig. According to him, “it would be used to pay quality professionals for quality work done and the community can be assured of total control over the Multisig.”

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It is worth noting that this new proposal is contrary to Alex’s earlier opinion that the funds be used to fund ecosystem development and pay the six appointed signers. Several community members like Vegas countered the off-chain management idea as well. 

Vegas later rolled out a controversial proposal that eventually passed with less than 30% of validators voting. The proposal suggested that the distribution of LUNC community funds be executed via on-chain voting.


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Ndianabasi Tom
Ndianabasi Tom
Ndianabasi Tom joined the crypto and blockchain industry in 2019. He is an all-rounded crypto content writer. He mostly covers industry news, developments, and other educational resources. He believes that proper crypto awareness is instrumental to achieving mass adoption.
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