Rex Harrison, also known as Rexzy, the head of organization of Terra Classic independent development group TerraCVita, revealed in a tweet yesterday that proposal 10879 had passed the governance vote with less than 30% of validators participating.
Every community asset spending will be subject to an on-chain governance vote under the initiative, which has caused controversy within the community. Notably, well-known community leader Vegas advocated it to stop the management of $4 million in off-chain assets that were just discovered by a selected group of people who had the necessary skills to effectively carry out development activities to fix the chain.
In the event that the proposal is approved, a community vote will also be required for the $4 million in assets. In a medium blog post, Rexzy describes the risks and obstacles it presents to the network’s development.
The $4 million in off-chain assets must first be converted into the extremely volatile Terra Luna Classic (LUNC) or TerraClassicUSD (USTC) by the community. Consequently, in the event of a market meltdown, the network might need additional funds to support development efforts. It also ran the danger of boosting or dumping LUNC’s price. Secondly, because each governance vote typically takes two weeks to complete (one week for community review and another week for voting), developers must wait a minimum of two weeks before receiving funds for any community pool expenses.
This could be disastrous in an emergency, in addition to impeding the network’s progress.
Read article: Concerns With the Terra Classic (LUNC) Proposal Phrasing
Unsurprisingly, Rexzy and TerraCVita opposed the proposal in light of this. Rexzy highlighted the following reasons as to why the developer-owned validator cast a “no with veto” vote:
- The proposal did not go through the normal consultation period of seven days.
- It was impractical as not all of the community’s assets are on-chain.
- The writing was vague.
Notably, the TerraCVita participant has put out a fix now that the proposal has been approved by governance. It will serve as a compromise between the suggestion made by core developer Edward Kim and Alex Forshaw, claims Rexzy.
Therefore, he asserts, the community must elect a trustworthy executive who will be held to the same standard of accountability as in the corporate world, including external audits. The executive will be given a mandate by the community to create a detailed roadmap that includes a budget estimate for the project’s costs as well as a contingency plan. Notably, this executive might thereafter request the funds through the grants scheme run by Edward Kim.
Additionally, he claims that the community must compensate these people on par with executives of comparable $2 billion firms.
In recent discussions about how to reward current creators and entice new ones, the Terra Classic community has been working to mend its frayed chain. Notably, the acceptance of the Terra grant scheme is a significant step in that direction and conveys to the larger development community the network’s willingness to support builders. It could create new use cases and hasten the rebuilding of the chain.
However, there are still raging arguments over how to manage $4 million in off-chain assets.