It is a revision of the initial 100 million ecosystem financing proposal.
On October 17, Monday, Terra ecosystem developers suggested a new expansion program for allocating 95 million of LUNA, amounting to $248 million. As Terra stated, the revised idea is intended to generate new development in the Terra ecosystem while also addressing flaws with the previous proposal.
Originally, 10% of the entire supply of LUNA, or 100 million LUNA, was to be distributed to the ecosystem, with 80% of this value going to developer mining awards. However, the Terra officials have clarified that there are just a few projects with complete value locked on the protocol, and this lack of competition would not result in efficient mining revenue distribution.
Developer mining payouts will drop from around 80 million LUNA to 20 million LUNA under the revised plan. As a reward for mining, 50 million LUNA would instead be redistributed to encourage the creation of decentralized exchanges inside the Terra ecosystem. Another 20 million LUNA would be awarded as developer grants, with a maximum recipient amount of 125,000 LUNA per project every year. Additionally, in order to encourage traction, users will get 5 million LUNA.
The distribution of funds according to the new proposal will be supervised by a seven-member committee made up of TerraForm Labs (TFL) staff, local leaders, and outside experts. Notably, non-TFL workers in the group will be receiving a monthly salary of 1,000 LUNA. Although the committee members will vote on funding requests, the committee itself will have discretionary control over the distribution of funds.