Terra Classic ($LUNC) On-Chain Lottery dApp Development Proposal

Proposals
1

Proposal by: Terra Classic (LUNC) Communitas (@LUNCCommunitas)
Objective: Develop a decentralized on-chain lottery dApp to accelerate $LUNC token burn, targeting 2T LUNC direct burn while providing sustainable, community-driven utility.

I. Project Background

  • Current Issue:
    $LUNC lacks high-frequency on-chain applications that can sustainably consume and burn tokens. Most burns currently rely on voluntary donations or transaction fees.

  • Proposed Solution:
    Launch a decentralized lottery dApp with transparent, verifiable smart contracts. A portion of the ticket pool is automatically burned, creating a self-sustaining token sink while offering players a fair and engaging lottery experience.

II. Core Objectives

  1. Token Burn: Achieve 2T LUNC direct burn through lottery operations.

  2. Sustainable Operation: High-frequency lottery draws attract continuous participation.

  3. Community Governance: Key parameters (prizes, burn ratio, draw frequency) controlled via DAO.

  4. On-Chain Transparency: All operations (ticket sales, draws, rewards, burns) are fully verifiable on-chain.

III. Lottery Design

1. Ticket & Prize Structure

  • Ticket Price: 5,000 LUNC per ticket

  • Net Lottery Pool per Draw: 2,000,000,000 LUNC

  • Prize Distribution (45% of pool for winners):

    • 1 Grand Prize Winner: 22.5% of pool (~450,000,000 LUNC)

    • 3 Secondary Prize Winners: Remaining 22.5% divided equally (~150,000,000 LUNC each)

  • Platform Maintenance & Development: 5%

  • Direct Burn: 50% of pool (~1,000,000,000 LUNC per draw)

2. Fairness & Transparency

  • Use chain-verified randomness (VRF) for draws.

  • All rewards, burns, and draws recorded on-chain for full auditability.

3. Draw Frequency

  • 1 draw per day.

  • Expected time to achieve 2T direct burn: ~2000 days (~5.5 years).

  • Daily lottery ensures steady engagement and consistent LUNC consumption.

4. Psychological & Marketing Considerations

  • 1 Grand Prize + 3 Secondary Prizes balances:

    • Marketing appeal (large headline jackpot)

    • Player engagement (more frequent winners to boost perceived chance)

    • Community sharing and social proof

IV. Token Burn & Transaction Tax Effects

  • Direct Burn: 50% of each pool, totaling 2T LUNC for 2000 draws.

  • Additional Burn from 1.2% Chain Transaction Tax:

    • Ticket purchase and prize payout transactions incur burn.

    • Estimated total extra burn: ~96.6B LUNC

    • Total LUNC burned over lifetime: ~2.0966T LUNC

  • Implication: The burn tax slightly exceeds the target, accelerating deflation and benefiting $LUNC holders.

V. Development Plan & Milestones

1. Core Components

  • Smart Contracts: Ticket purchase, prize distribution, draw logic, auto-burn.

  • Front-End dApp: Web interface with wallet integration (Terra Station, Keplr), real-time prize pool, and draw history.

  • Backend Services: Blockchain interaction APIs, analytics dashboard for burns and draws.

  • Security Audit: Open-source contracts, basic third-party audit, phased full audit post-launch.

2. Development Phases (6–8 months)

Phase Duration Scope
Phase 1 1–2 months Smart contract prototype, ticketing logic, burn functionality
Phase 2 2–3 months Front-end and backend integration, testnet deployment
Phase 3 1–2 months Community beta test, feedback, bug fixes, initial security review
Phase 4 1 month Mainnet launch, marketing push, DAO governance integration

VI. Budget & Resource Allocation (Simplified)

Total Budget: $50,000 – $100,000 USD (or equivalent in $LUNC / stablecoin)

Category Simplified Budget Notes
Smart Contract Development $20k–25k Core functionality only, advanced features postponed
Security Audit $10k–15k Initial community and small third-party audit; major audit later
Front-End & Backend $15k–20k Minimal web interface; mobile & UX optimizations post-launch
Infrastructure (API, hosting) $5k–10k Cloud hosting / low-cost solutions
Community Marketing & Promotion $5k–10k Social media, KOLs, community events
Operations $5k Basic human resources / admin
Initial Pool Reserve $0–5k Optional pre-seed LUNC for early draws

Strategy: Prioritize core lottery functionality and on-chain transparency; advanced UI/UX and additional features can be iterated post-launch.

VII. Expected Outcomes & Long-Term Value

  1. Sustained Token Burn: Daily draws steadily reduce circulating $LUNC supply.

  2. Community Engagement: High-frequency draws encourage repeated participation and social sharing.

  3. Ecosystem Expansion: Platform can later integrate NFT lotteries, cross-chain betting, or special events.

  4. DAO Governance: Community-controlled adjustments to burn ratio, prize distribution, and draw mechanics.

VIII. Summary

The proposed $LUNC lottery dApp:

  • Provides a sustainable, high-frequency $LUNC burn mechanism.

  • Balances marketing appeal, player engagement, and community governance through a 1 Grand Prize + 3 Secondary Prizes structure.

  • Operates fully on-chain with transparent smart contracts and verifiable random draws.

  • Budget-efficient: Launch feasible with $50k–$100k USD, relying on a minimal viable product approach and community support.

Request: Community approval and development funding to implement this critical $LUNC burn utility and strengthen Terra Classic’s on-chain ecosystem.

1 Like
2

Let’s plug in your numbers properly and see what falls out.

Given

  • LUNC price: $0.000040

  • 24h LUNC volume: $20,000,000

  • Ticket price: 5,000 LUNC

  • Net pool per draw: 2,000,000,000 LUNC

  • Burn per draw: 1,000,000,000 LUNC (50% of pool)

  • 1 draw per day

:one: Convert volume to LUNC

At $0.000040:

  • 1 USD = 25,000 LUNC

  • $20,000,000 × 25,000 = ~500,000,000,000 LUNC
    → That’s 500B LUNC traded per day (rounding).

:two: How big is each lottery draw in USD?

  • Ticket price in USD:
    5,000 LUNC × $0.000040 = $0.20 per ticket

  • Tickets needed per draw to fill a 2B LUNC pool:
    2,000,000,000 ÷ 5,000 = 400,000 tickets per draw

  • Total pool per draw in USD:
    2,000,000,000 LUNC × $0.000040 = $80,000 / day

  • Burn per draw in USD:
    1,000,000,000 LUNC × $0.000040 = $40,000 / day burned

So your dApp, at full target parameters, is basically:

:admission_tickets: 400k tickets/day · $0.20 each → $80k/day

:fire: $40k/day of LUNC burned

:three: Share of total LUNC activity required

Daily on-chain lottery spend (2B LUNC) vs overall daily LUNC volume (500B LUNC):

\frac{2B}{500B} = 0.004 = 0.4\%

:backhand_index_pointing_right: The lottery only needs to capture ~0.4% of total daily LUNC volume to hit your target pool size.

That’s reasonable than in absolute terms without volume context.

It’s still ambitious (because exchange volume ≠ on-chain dApp usage), but:

  • You’re not asking for 10–20% of all activity.

  • 0.4% of flow being rerouted into a popular, marketed ecosystem game is plausible, especially in hype phases.

:four: Time to hit 2T burn at these parameters

You already set:

  • Burn per draw: 1,000,000,000 LUNC

  • Target total burn: 2,000,000,000,000 LUNC

So:

  • Days to 2T burn:
    2,000,000,000,000 ÷ 1,000,000,000 = 2,000 days

  • In years:
    2,000 ÷ 365 ≈ 5.5 years

At current price:

  • Total value of 2T LUNC burned:
    2,000,000,000,000 × $0.000040 = $80,000,000 worth of LUNC removed over ~5.5 years.

That aligns perfectly with what your proposal already claims (so the math checks out).

:five: Plausibility verdict with these inputs

With LUNC at $0.000040 and $20M daily volume:

  • The design only needs ~0.4% of daily volume to flow into the lottery to:

    • Maintain a 2B LUNC daily pool

    • Burn 1B LUNC/day

    • Reach 2T burned in ~5.5 years

So these concrete numbers make your target much more plausible if:

  • Volume stays in that ballpark over the long term, and

  • The lottery becomes a major “default” utility/attraction for LUNC holders.