Proposal to Pause Lunc burns until Terra price recovery

GOVERNANCE & PROPOSAL
1

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:

  1. Pause LUNC Burns:
  • Temporarily halt the weekly burns of 1,000,000 LUNC from the Terraport treasury.
  1. 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.
  1. 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.

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