Proposal to Pause LUNC Burns from Terraport Treasury
Objective: To temporarily pause LUNC burns from the Terraport treasury until the price stabilizes, and redirect the funds to buy back and burn $TERRA, thereby adding more value to the ecosystem.
Background:
- Current weekly LUNC burns from the Terraport treasury average 1,000,000 LUNC, equivalent to approximately $87.00 USD per week.
- Redirecting these funds to buy back and burn $TERRA at the current price of $0.007 would result in burning over 10,000 $TERRA each week.
- Terraport continues to pay LUNC burn taxes, which already contribute value to the LUNC ecosystem.
Proposal:
- Pause LUNC Burns:
- Temporarily halt the weekly burns of 1,000,000 LUNC from the Terraport treasury.
- Redirect Funds:
- Utilize the $87.00 USD per week to buy back and burn $TERRA.
- This would result in burning over 10,000 $TERRA each week, based on the current price of $0.007.
- Monitor and Review:
- Continuously monitor the price stability of LUNC.
- Reassess the situation periodically to determine when to resume LUNC burns from the treasury.
Rationale:
- Price Protection: Redirecting funds to buy back and burn $TERRA will help protect and potentially increase the price of $TERRA.
- Value Addition: The continued payment of LUNC burn taxes ensures ongoing value addition to the LUNC ecosystem.
- Strategic Adjustment: This temporary measure aims to stabilize the market and protect the interests of the community.
Conclusion: By pausing LUNC burns from the Terraport treasury and redirecting the funds to buy back and burn $TERRA, we can take a strategic step towards stabilizing the price and adding more value to the ecosystem. This proposal seeks the community’s support to implement these changes for the benefit of all stakeholders.