A new proposal on Agora – the Terra ecosystem’s research forum – has outlined the details of a new ecosystem expansion plan called “Terra Expedition.” The proposal is a revised iteration of the Developer Mining Program and Developer Alignment Program aimed at better aligning the incentives of the blockchains’ participants.
While the original proposal committed to distributing 9.5% of LUNA’s total supply based on Total Value Locked (TVL), developers believe that a TVL-based allocation would only benefit a few protocols in the ecosystem. This is primarily because, in its current state, the bulk of the $51 million worth of TVL on Terra is concentrated amongst a small number of platforms.
The new proposal is a 4-year incentive program that will distribute 95 million LUNA tokens with the aim of incentivising Terra developers, deepening liquidity and growing the blockchain’s users. The program will be managed by a community-elected committee and be evaluated every year.
As per the revised proposal, 20 million LUNA will be allocated to developer grant programs and another 20 million LUNA will be allocated towards the developer mining program. While the original proposal apportioned an 80 million allocation towards mining, Terra developers appear to have reallocated a chunk of this towards incentivizing liquidity creation within the ecosystem.
The Terra team has proposed allocating 50 million LUNA tokens to a liquidity mining incentive program with the aim of driving organic volume on Terra-based decentralized exchanges (DEXes). These rewards will be distributed over the course of four years.
The proposal also details a 5 million LUNA allocation to a user incentive program that it describes as “more experimental.” Some of the proposed user incentives include rewards for every time a user bridges assets into the Terra ecosystem and evolving NFTs.
“Keen to hear the community’s thoughts on this! It feels like a step in the right direction moving away from TVL-based grants. Good to entice more developers to come build on Terra,” commented one user on the forum.