Edward Kim proposes a grant program to encourage chain utility and improve transparency in community pool distribution.
Terra core developer Edward Kim shared a proposal to launch a Terra Classic grants program today in a tweet to ensure the efficient and transparent distribution of community pool funds.
Kim’s proposal comes as he anticipates that proposal 5234 will be approved by the community. Notably, the proposal proposes lowering the 1.2% tax burn parameter to 0.2%, with 10% of the tax collected going to the community pool to fund development activities.
The proposal has recently gained traction and served as the foundation for numerous community discussions. For example, Kim, who originally advocated for the reported 1.2% tax parameter, has voted to favour the new proposal, explaining his reasoning in a blog post. In addition, the proposal has been supported by KuCoin, the leading centralized cryptocurrency exchange.
According to Kim’s most recent proposal, the grant program team will work to identify flaws in the Terra Classic chain. Once these issues have been identified, requests for cash incentives will be made for developers or talent to submit proposals to address the identified deficiency.
To avoid potential conflicts of interest, independent reviewers will review the proposals. The data and reviewer recommendations will be published as a proposal at the end of the proposal review process, requesting the community to ultimately approve the allocation of funds for the project to a designated multisig address.
Notably, the grant foundation will pay grantees based on the address.
To that end, Kim requests $68,000 to kick off and cover the grant program’s operating expenses for the next six months. It is worth noting that the Terra community pool currently holds approximately 407 million LUNC, which is approximately $120,000 at current exchange rates.
So far, Kim’s proposal has received mostly positive feedback because it promises to create a transparent system that encourages developing and discovering new talent. In addition, Kim has promised to recuse himself from grants involving the Terra Rebels and TerracVita because of his affiliations with both.
With slightly more than $12 million in total value locked, the Terra Classic chain recently ranked 60th among DeFi chains (TVL). The community hopes to rebuild the chain and return it to its former glory when it was second only to Ethereum in terms of TVL with over $30 billion. However, it is currently hampered by a lack of utility and technological parity with competing chains.