Terra’s ecosystem crash had wiped nearly $40 billion from the crypto market and brought nightmares for its investors. It is one of the biggest implosions in the cryptocurrency market that took place in May this year.
However, the developers of Terra now seek to make a comeback for LUNA with a 4-year revival plan amid the crypto winter, and co-founder Do Kwon’s violation of South Korea’s Capital Markets Act.
Can LUNA Make A Comeback With Revival Plan?
Terra’s developers have rolled out several revival plans, and the founding team is putting enough effort into pushing LUNA upward despite its co-founder Do Kwon’s arrest warrant for committing fraud. The South Korean government authorities have been looking for Kwon since September; however, Kwon claimed he is not on the run.
Terra Labs has now introduced ‘Terra Expedition,’ which is the enhanced version of Terra’s developer mining and alignment program, which was formed during Terra’s establishment.
Terra Expedition will be funded with 9.5% of LUNA’s total supply, which was decided at the launch of LUNC, which is Terra’s new blockchain after LUNA’s crash. It is to be noted that the introduction of LUNC was also a revival plan to bring back the old reputation of LUNA.
The incentive program of Terra Expedition will be continued for four years, and the evaluation of the proposal will be executed every year by the community elected committee.
The main motive behind forming this revival plan is to attract investors and developers to LUNA’s network, which will gradually bring liquidity.
The proposal states, “The Terra Expedition is a four-year program aimed at growing the Terra ecosystem through a series of initiatives with three main objectives, namely: incentivizing developers to build on Terra, deepening liquidity on Terra and onboarding users to Terra.”
A Second Chance For LUNA!
According to the proposal, 20 million LUNA tokens are assigned for the incentive program. Furthermore, the program will provide exclusive rewards, including prize money of $40K to developers for successfully building a project with smart contracts on the LUNA network.
Some of the network projects that can be developed include decentralized apps, lending protocols, stablecoin issuers, and derivatives protocols. The proposal stated that the LUNA tokens would be circulated quarterly in the network.
Another distribution of 50 million LUNA tokens has been proposed for the mining incentive program, which will be distributed over the next four years. This fund will be used to fulfill the initial liquidity of projects built on the network.
Moreover, Terra developers have also proposed another five million tokens to give users as an incentive for using the projects on the network and minting NFTs on the platform.
However, it seems that such distribution of tokens will only benefit a few protocols, and it may not bring any significant change to LUNA’s ecosystem.