Terra Ecosystem has been closely monitored ever since the crypto markets collapsed due to the native tokens of the network. The fall was historical, which created a domino impact on the other platforms as well. More significantly, the impact continues to coil up as the investors still remain aloof and are not willing to go long on the tokens.
However, to gain back the confidence and the strength of the rally, Terra’s Governance Team made up of LUNC & LUNA has proposed a new expansion strategy. This strategy aims to restore the entire ecosystem after the tragic event.
The program is basically a revision of the Developer Mining Program & Developer Alignment Program which were initially defined during the launch of the Terra blockchain. The revision mainly aims to better align the incentives across the ecosystems & attract the developers. Along with this, the plan also focuses on onboarding users & promoting deep liquidity.
The main aspects of the revision are:
The initial 100 million LUNA allocation will be now slashed to 95 million with 80% of this will be rewarded to the developers as mining rewards
Secondly, the mining rewards will be dropped from 80 million LUNA to 20 million LUNA
Additionally, 50 million LUNA will be reallocated as liquidity mining rewards to develop the decentralized exchanges on the Terra ecosystem
Lastly, another 20 million LUNA would be distributed annually among the developers in form of grants & 5 million to be distributed to the community as an incentive for growth
While the TVL of LUNA has plunged heavily and so as the native tokens LUNA & LUNC. Moreover, the tokens forecast the possibilities of a continued descending trend over some time. Also, the recently launch 1.2% tax burn proposal which was widely implemented, failed to uplift the prices accordingly.
In such a case, it is unclear whether the revival plans will restore the ecosystem to its former glory.