III. Investment Plan and Use of Funds
• Proposed fundraising: US$250 million (which may be raised in stages).
• Primary use: Purchase LUNC through public markets, OTC channels, or other compliant avenues approved by the community, then immediately transfer it to an official or multisig burn address for permanent destruction, with the goal of reducing the total supply by approximately 90%.
• Execution principles:
• Verifiable on-chain throughout, with full transparency;
• Avoid causing uncontrollable market disruption; prioritize execution in gradual batches;
• Complement existing on-chain burn taxes and exchange burn programs, rather than replace them;
• Use of funds will be subject to joint oversight by investors and the community (multisig controls or independent audits may be established).
Note: The amount that can actually be burned will be significantly affected by market prices, liquidity, slippage, and the regulatory environment. A rough estimate based on current prices suggests that large-scale purchases would drive prices up substantially, and actual costs could far exceed static estimates. Execution will require rigorous risk controls and dynamic adjustments.
IV. Investor Returns and Commitment to a Community Vote
The project’s core incentive mechanism is as follows:
• Once the funds have been received and the milestone burn targets achieved, the project team will formally submit a proposal to the Terra Classic governance module, explicitly requesting community approval to allocate 49% of the relevant token amount (or equivalent rights) to investors in this round as a group.
• Details such as the recipients, lock-up period, release schedule, and whether distributions will be tied to burn progress will be fully disclosed in the proposal and decided entirely by an on-chain community vote.
• The project team undertakes not to predetermine the outcome, but to engage actively, provide complete disclosures, and accept community oversight. Whether the proposal passes will depend entirely on the independent will of Terra Classic holders and validators.
This design aims to align investors’ interests with the community’s long-term interests: the increased scarcity resulting from a substantial supply reduction, combined with investors receiving a significant share, creates a positive feedback loop.
• Proposed fundraising: US$250 million (which may be raised in stages).
• Primary use: Purchase LUNC through public markets, OTC channels, or other compliant avenues approved by the community, then immediately transfer it to an official or multisig burn address for permanent destruction, with the goal of reducing the total supply by approximately 90%.
• Execution principles:
• Verifiable on-chain throughout, with full transparency;
• Avoid causing uncontrollable market disruption; prioritize execution in gradual batches;
• Complement existing on-chain burn taxes and exchange burn programs, rather than replace them;
• Use of funds will be subject to joint oversight by investors and the community (multisig controls or independent audits may be established).
Note: The amount that can actually be burned will be significantly affected by market prices, liquidity, slippage, and the regulatory environment. A rough estimate based on current prices suggests that large-scale purchases would drive prices up substantially, and actual costs could far exceed static estimates. Execution will require rigorous risk controls and dynamic adjustments.
IV. Investor Returns and Commitment to a Community Vote
The project’s core incentive mechanism is as follows:
• Once the funds have been received and the milestone burn targets achieved, the project team will formally submit a proposal to the Terra Classic governance module, explicitly requesting community approval to allocate 49% of the relevant token amount (or equivalent rights) to investors in this round as a group.
• Details such as the recipients, lock-up period, release schedule, and whether distributions will be tied to burn progress will be fully disclosed in the proposal and decided entirely by an on-chain community vote.
• The project team undertakes not to predetermine the outcome, but to engage actively, provide complete disclosures, and accept community oversight. Whether the proposal passes will depend entirely on the independent will of Terra Classic holders and validators.
This design aims to align investors’ interests with the community’s long-term interests: the increased scarcity resulting from a substantial supply reduction, combined with investors receiving a significant share, creates a positive feedback loop.