Proposal for the Establishment of the Terra Classic Affairs Committee

Proposals
1

Proposal for the Establishment of the Terra Classic Affairs Committee​

To systematically address core challenges currently facing the Terra Classic ecosystem—including governance divisions, fund security risks, sluggish technological iteration, and insufficient ecological activity—enhance governance professionalism and decision-making efficiency, ensure the compliant use of community assets, and promote the long-term sustainable development of the ecosystem, this proposal for establishing the Terra Classic Affairs Committee is refined in conjunction with Terra Classic’s current status as follows:​

I. Objectives​

(1) Core Existing Issues​

  1. Governance Layer: Severe community divisions persist, with fundamental disputes over fund utilization (e.g., USTC burn, developer funding); proposals are frequently rejected by large margins. The governance process lacks professional guidance and is prone to being dominated by short-term emotions and speculative behavior.​

  2. Fund Layer: Community pool fund management lacks transparency, with risks of historical fund leakage (e.g., 200 million USTC illegally transferred and unrecoverable). Fund allocation lacks strategic planning, and some developer funding proposals have aroused community doubts. Meanwhile, the Oracle pool faces an imminent risk of depletion, which will directly impact validators’ revenues and network security.​

  3. Technology Layer: Core development teams have withdrawn (e.g., Terra Rebels ceased support), leaving technological iteration dependent on scattered teams. Poor network usability (complex mnemonic phrase and private key management) has led to low user adoption. Smart contract security incidents occur frequently (e.g., Terraport hack), and the audit mechanism is inadequate.​

  4. Ecological Layer: On-chain activity remains sluggish with a lack of real active users, over-reliant on token burn speculation. Liquidity is concentrated on small and medium-sized exchanges, with weakened support from top-tier platforms. Validators face unbonding risks due to delayed responses and subpar voting rates, and a coordination mechanism is absent.​

  5. Compliance Layer: Founder Do Kwon was convicted of fraud, exposing the project to long-term compliance and reputational risks. An independent compliant governance framework must be established to address cross-border regulatory pressures.​

(2) Short-Term Objectives (0-6 Months)​

  1. Establish standardized governance processes and a community dispute resolution mechanism to reduce proposal rejection rates and drive consensus on core issues (e.g., Oracle pool fund replenishment, security audit standards).​

  2. Complete a comprehensive inventory and accounting disclosure of community pool funds, establish a full-cycle supervision mechanism for fund usage, recover traceable illegally transferred assets, and prevent new fund risks.​

  3. Collaborate with core development teams (e.g., Genin Labs) to advance basic technological optimizations (e.g., user experience simplification, smart contract security enhancement), reduce validator unbonding probabilities, and ensure stable network operation.​

  4. Strengthen communication with top-tier exchanges (Binance, Kucoin) to improve liquidity; establish a unified social media communication channel to convey positive ecological information and mitigate market panic.​

(3) Long-Term Objectives (1-3 Years)​

  1. Build a professional, decentralized governance system to achieve a closed loop of “dispute resolution - proposal optimization - implementation supervision,” enhancing community trust and governance efficiency.​

  2. Establish a sustainable fund ecosystem: Ensure the long-term viability of the Oracle pool through reasonable financing and fund allocation; support the incubation of high-value ecological projects, drive token burns through on-chain activity, and reduce reliance on speculation.​

  3. Complete technical architecture upgrades to achieve compatibility parity with core Cosmos ecosystem chains, optimize user onboarding experience (e.g., biometric authentication, simplified wallet operations), and increase daily active users to the industry’s median level.​

  4. Eliminate compliance risks, establish communication channels with regulatory authorities, promote the regularization of LUNC/USTC trading, attract institutional capital participation, and realize the return of ecological value.​

II. Organizational Structure​

(1) Technical Committee​

  • Core Functions: Responsible for technical roadmap planning and iteration decisions; select and collaborate with high-quality development teams, supervise the execution of technical proposals; formulate smart contract audit standards and organize third-party security audits; optimize validator node configurations and provide technical support to reduce unbonding risks.​

  • Composition: 3-5 senior blockchain technology experts (including those with Cosmos ecosystem development experience), 2 community-elected technical representatives, 1 security audit consultant. Term: 1 year, renewable.​

(2) Economic Committee​

  • Core Functions: Formulate community pool fund management rules and budget plans; lead financing strategies (e.g., ecological fund raising, compliant token use case design); monitor Oracle pool fund consumption and propose sustainable replenishment solutions (e.g., adjusting gas fees, introducing external capital); evaluate the feasibility of ecological project funding and track fund usage effectiveness.​

  • Composition: 2-3 crypto economic analysts, 1 financial audit expert, 2 community-elected fund representatives, 1 compliance consultant. Term: 1 year, renewable.​

(3) Governance Coordination Committee (Newly Added)​

  • Core Functions: Build bridges for community communication and organize hearings on controversial issues; optimize the proposal process and provide professional advice to improve proposal quality; supervise the execution of committee decisions and regularly disclose progress to the community; handle community complaints and feedback to ensure governance transparency.​

  • Composition: 2 community governance experts, 3 community representatives from diverse perspectives (including validators and ordinary users), 1 legal consultant. Term: 1 year, with a maximum of two consecutive terms.​

(4) Daily Affairs Center (Integrating the Original “Daily Affairs” Module)​

  • Coordinate social media operations, exchange collaboration, validator coordination, compliance filing, and other affairs. Serve as the committee’s external execution body, reporting to the Technical, Economic, and Governance Committees.​

III. Core Responsibilities (Refining the Original “Daily Affairs”)​

  1. Social Media & Brand Operations: Establish a unified account matrix on platforms such as Twitter and Discord to publish governance progress, technical updates, and fund usage reports; counter false information, convey long-term ecological value, and avoid narrative dominance by short-term speculation.​

  2. Exchange & Liquidity Management: Collaborate with global mainstream exchanges to coordinate deposit/withdrawal services, listing maintenance, and liquidity incentives; promote top-tier exchanges’ participation in token burns and ecological co-construction to enhance trading depth.​

  3. Validator Coordination Services: Establish a validator whitelist and communication group, provide node operation and maintenance technical support; remind validators of voting obligations and block synchronization requirements to reduce unbonding risks; collect validator feedback and optimize network parameters.​

  4. Financing & Ecological Incubation: Design compliant financing schemes (e.g., ecological funds, NFT staking financing); select high-quality ecological projects (focusing on DeFi and payment scenarios), provide funding support and resource connection; track project implementation effects to ensure funds generate tangible value.​

  5. Technical Support & User Services: Promote user experience optimization (simplified wallet operations, biometric authentication support); establish a technical issue feedback channel to coordinate rapid responses from development teams; compile onboarding tutorials and FAQs to lower entry barriers for new users.​

  6. Audit & Compliance Management: Organize monthly and annual audits of community pool funds and disclose audit reports; mandate third-party audits for ecological projects’ smart contracts and establish a security vulnerability emergency response mechanism; engage with regulatory authorities, complete compliance filings, and mitigate legal risks.​

IV. Fund Management (Strengthening Supervision & Sustainability)​

(1) Daily Fund Management​

  1. Fund Sources: Existing community pool assets (LUNC, USTC), transaction fee sharing, ecological project revenue sharing, and compliant financing proceeds.​

  2. Management Rules: Implement a full-cycle management process of “budget application - committee review - community voting - execution disclosure - audit tracing.” Single expenditures exceeding 500 million USTC or equivalent assets require community voting approval (approval rate ≥ 60%). Establish a multi-signature wallet management mechanism, requiring joint signatures from one representative each from the Technical, Economic, and Governance Committees for fund transfers.​

  3. Disclosure Requirements: Publish detailed monthly fund inflows/outflows and balance snapshots by the 5th of each month; release quarterly fund usage effectiveness evaluation reports to accept community supervision and inquiries.​

(2) Financing & Sustainability Mechanisms​

  1. Short-Term Financing: Launch an ecological co-construction fund to raise capital from compliant institutions and long-term investors, earmarked for Oracle pool replenishment and technological upgrades.​

  2. Long-Term Sustainability: Design LUNC/USTC use cases (e.g., DeFi staking, transaction fee discounts) to enhance token utility; collect service fees from ecological projects (e.g., transaction fee sharing) to form a fund closed loop; explore compliant profit models to reduce reliance on token burns.​

V. Roadmap (Optimizing Feasibility)​

  1. Preparation Phase (Months 1-2)​

  • Establish a Preparatory Team: Composed of 3 senior community members, 2 technical experts, and 1 financial consultant, responsible for drafting the committee’s charter and formulating recruitment rules.​

  • Community Opinion Collection: Gather feedback on organizational structure and responsibility scope through Discord, forums, and other channels to revise and improve the proposal.​

  • Charter Disclosure: Publish the committee’s charter (including member election rules, decision-making processes, and accountability mechanisms) and submit it for community voting (effective with approval rate ≥ 65%).​

  1. Establishment Phase (Months 2-3)​

  • Member Election & Recruitment: Conduct elections for the three committees in accordance with the charter; publicly recruit professional consultants (audit, compliance, technical) and disclose candidates’ backgrounds and qualifications.​

  • Whitepaper Release: Compile the Terra Classic Affairs Committee Whitepaper, clarifying the governance framework, fund rules, technical roadmap, and ecological plans as the committee’s guiding document.​

  • Work Mechanism Construction: Establish committee meeting systems (weekly regular meetings, monthly disclosure meetings), voting systems, and community feedback channels; complete multi-signature wallet deployment.​

  1. Launch & Trial Operation Phase (Months 3-6)​

  • Official Launch Ceremony: Disclose the full list of committee members and work mechanisms to the community and initiate full-scale operations.​

  • Key Task Advancement: Complete community pool fund inventory, implement Oracle pool solutions, connect core technical optimization proposals, and enhance exchange liquidity to achieve short-term objectives.​

  • Trial Operation Evaluation: After 6 months of operation, release a phased report, collect community feedback, optimize the organizational structure and responsibilities, and submit for community voting confirmation.​

  1. Stable Operation Phase (After 6 Months)​

  • Regular Governance: Conduct daily operations in accordance with the charter, publish quarterly ecological development reports, and hold annual committee member re-elections.​

  • Long-Term Objective Advancement: Focus on technological upgrades, ecological incubation, and compliance filings to transform Terra Classic from a “speculative asset” to a “utility-driven ecosystem.” Proposal for the Establishment of the Terra Classic Affairs Committee Proposal for the Establishment of the Terra Classic Affairs Committee