- Backbone Labs and Eris Protocol seek approval for a 10 million $LUNA token injection to enhance the Terra ecosystem.
- The proposed initiative is not a grant, but a strategic move aimed to improve ROI for the Terra community pool and boost $LUNA token utility.
As staunch proponents of the Terra ecosystem, Backbone Labs and Eris Protocol have presented a unique initiative to elevate the Terra community’s participation. This venture centers around dual incentive systems, Gravedigger and WhiteWhale DEX, and proposes a 10 million $LUNA token allocation, divided equally between both entities.
New Agora post: "Revitalizing Terra: A Backbone Labs and Eris Protocol Collaboration".
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Preview: Introduction and Proposal
We, the combined forces of Backbone Labs and Eris Protocol, submit this propos…
— Terra Governance Alerts (@terra_agora) June 21, 2023
The story of Backbone Labs and Eris Protocol is one of tenacity and commitment. Born in the wake of Terra’s crash, these entities bolstered the community when it was most needed. Their shared vision is clear: breathe new life into the ecosystem, support its recovery, and spearhead growth-inducing innovations that would reinvigorate the community’s trust and engagement in the Terra blockchain.
Backbone Labs, renowned for its work in the web3 space, focused on crafting innovative decentralized finance solutions that married NFTs and multichain collaboration. Meanwhile, Eris Protocol carved its niche in the Terra ecosystem as a liquid staking derivatives provider and a purveyor of yield optimization strategies, thus playing a pivotal role in Terra’s recovery.
In their proposal, they call for a 20 million $LUNA injection into the Gravedigger, WhiteWhale DEX, Astroport DEX, and Eris Protocol. The tokens will be equally allocated for enhancing the liquidity of both LSTs. This strategic move promises several benefits: stimulated economic activity, reduced slippage, enhanced accessibility of Terra DeFi space, and furthered financial democratization in alignment with Terra’s core values. It also aims to deepen LST liquidity, enabling greater reach and integrations of LUNA LSTs in the cosmos.
To ensure transparent oversight, a multi-sig wallet will be established and managed by representatives from diverse community areas. Moreover, in alignment with protecting communal resources, it is intended that the funds will revert to the community pool upon the realization of the Alliance system for liquidity pools.
Through this proposal, Backbone Labs and Eris Protocol aim to create a more dynamic Terra ecosystem. They believe this move will trigger a growth cycle for all ‘Lunatics’ and elevate Terra’s standing in the DeFi space. As always, they welcome feedback and look forward to further discussion on this proposal.