Hello Terraport community!
This is the first official discussion in the Governance Forum!
This discussion is about the next proposal that will be published in the Terraport Governance: update the ratios of the Treasury Distribution.
How the distribution work actually?
“native_token”: “uluna”
“native_token_ratio”: 0
“cw20_token_ratio”: 30
“staking_pool_ratio”: 10
“community_pool_ratio”: 5
“security_ratio”: 10
“provider_ratio”: 45
This mean that the burn rateo of Lunc is configured as 0%, Terra token burn rateo is configured as 30%, staking pool funding 10%, community pool (governance) funding 5%, security and management funding 10% and the liquidity provider contract (the stability system that provide new liquidity into the Terra pools at evert treasury execution) with 45%.
Now, the distribution can’t be executed with a 0% parameter, this mean that we have to setup a minimum rateo of treasury lunc burn.
Our proposal is:
“native_token”: “uluna”
“native_token_ratio”: 2
“cw20_token_ratio”: 30
“staking_pool_ratio”: 8
“community_pool_ratio”: 5
“security_ratio”: 10
“provider_ratio”: 45
Why only 2% of Lunc burn?
After the exploit Terraport was stopped for 7 months, in this time the vesting was almost completely unlocked and the staking has payed rewards every day without the weekly execution of the project tokenomics to maintain the stability. The actual configuration is the best way to maintain the stability of the project for the next 6 months, after this timeframe we can think to increase the lunc burn rateo and reduce others parameters.
With the transactions of Terraport and the Burn Tax at 0.5% there is already an high Burn OnChain generated from the use of the platform, so we thought that burning a small % of LUNC from treasury is not the priority of our community and we decided to increase the liquidity in the pools (to also pay the old liquidity providers and support the recovery funds) and increase the Burn of TERRA, so the platform grows day after day in autonomy.
The future of the protocol is in the hands of the Terraport community, share your opinions and ideas!
This proposal will be up for vote in Governance in 24h.
