Developers of the Terra ecosystem – made up of Luna Classic (LUNC), TerraUSD Classic (USTC) and Luna 2.0 (LUNA) – reportedly put up a revised expansion program for the allocation of 95 million LUNA ($248 million). 

Specifically, as revealed by Terra, the freshly surfaced proposal is built with a goal of incentivizing development in the Terra ecosystem as well as resolving problems in the original proposal.

In the original plan, approximately 10% of LUNA’s overall supply – or 100 million LUNA – would be dedicated towards the ecosystem, with 80% of this sum devoted to developer mining rewards. 

Nonetheless, Terra employees offered explanations that there are only a handful of initiatives with overall value locked on the protocol, and the competition insufficiency would not bring about the outcomt in the proper distribution of mining revenue.

Within the scope of the new proposal, developer mining rewards would be toned down from around 80 million LUNA to 20 million LUNA. On the other hand, 50 million LUNA would be reallocated as liquidity mining rewards to incentivize building decentralized exchanges on the Terra ecosystem. 

An extra 20 million LUNA would be offered as developer grants, with a maximum recipient amount of 125,000 LUNA for every initiative on an annual basis. Finally, 5 million LUNA will be given to users to incentivize traction.

A seven-member committee made up of TerraForm Labs (TFL) staff, community leaders and external professionals will keep oversight of the allocation of funds. 

The appointment period will be one year, with non-TFL employees in the group receiving a monthly compensation of 1,000 LUNA. Although the committee members will vote to decide on funding proposals, the committee, itself, will have discretionary authority over the allocation of funds.