As many are aware, we’ve been thinking and discussing a dedicated fund for Terra projects and devs who port over into Secret. We put out this proposal for a public discussion now before going on-chain.
Who is eligible?
Unlike other funds (which are still available for everyone), the Terra fund will be dedicated to the following:
Projects building on Terra that want to move to Secret as their new home (preferred), or otherwise cross-deploy.
Developers (including solo developers) who were dismissed from Terra projects and are looking for support building on another chain.
Secret projects/community members affected by the crash who want to take a new project onto themselves and get funding.
Details
The fund would accumulate funds by taking in 6% of the block-rewards for the next 12 months. Any excess funds will be burned at the end of the 12 months period, to ensure this proposal is deflationary.
A rough estimate puts the fund’s total value at ~1.95M SCRT (217M*15%*6%), giving us a good amount to invest in strong projects and strong teams.
Potential Inflation offset
Based on the results of the discussion here. We may want to adjust the inflation to offset the (relatively mild) reduction in block rewards. This has been raised by several community members. I don’t have a strong opinion, since doing so would not really increase the inflation in the network unless there are strong projects who build on Secret that would otherwise not build on the network (which most would likely agree is a net benefit).
Implementation
We don’t want this to be a hard fork or a complicated mechanism. We also think adding it the community pool directly would create unnecessary commingling of assets. So to meet these criteria we propose the following:
We piggy-back on the Foundation-tax module.
We update the address to a contract, and increase the tax back to 10%.
The contract itself (SCRT Labs will develop that), will be a simple distribution contract that distributes 4% to the foundation wallet and the rest to another wallet (either controlled by a multi-sig or by SCRT Labs. No preference here).
If more funding is needed earlier, then SCRT Labs can loan the funds to the fund.
At the end of the 12 month period, anything left in the wallet gets burned
Opening this to a network wide discussion with the intention of going on-chain in a week, as per governance guidelines.
You could also increase the community tax from 2% to 12% and then create a community spend proposal to move these extra funds (in let’s say quarterly (or half yearly?) intervals) to a separate terra fund wallet via a community voting proposal just as it is done with the committee spending proposals.
As the community pool is already pre filled you can fund the first payment to the wallet before adjusting the tax and then refill the community pool via the higher tax of 12%.
That would need almost 0 prep and no trust on almost all sides of this.
I am definitely in support of this. Secret Network has alway been a close ally of Terra builders and we should support as many builders as possible that are interested in the power of interoperability & privacy.
This is a rare opportunity to signal to a massive community of folks that believe in decentralized technology such as Terra that Secret Network can and will offer tangible support to their community during this time of crisis. Thank you @guy for organizing this awesome initiative - Shade Protocol devs are happy to help support any new developers entering into the Secret Network ecosytem for the first time from Terra.
The proposal seems nice to help fellow Terra developers, however I would expect clear KPIs and targets, not just “good will”.
What is the strategy to actually approach and onboard the developers (and projects) we want to attract to the Secret Network? How will we measure if this proposal is actually bringing value to the Secret Network (and the parties that decide to develop here)? Will this be revised before the 12 month period in order to see if it makes sense to keep it (or even increase it if widely successful)? By whom?
Fully support this Guy! SCRT Labs has been tirelessly working in the background along side our BD team and the awareness committee leads reaching out to all projects on Luna. This gives us the steam we need to execute. Eager to use these funds for the betterment of SN ecosystem.
Why are we raising new funds for onboarding new devs from Terra when we supposedly raised 400 million dollars earlier this year?
I do agree that this is an opportunity to bring new talented devs to SCRT network, but it seems like some of that 400 million dollar fund should be used for this purpose. Or am I missing something?
I am in favor of this proposal and hope to see some great projects onboard onto the network.
I think this proposal has taken into consideration a lot of feedback about concern for our own already established builders while still allowing us to reach out to Terra projects and help them find a new home.
@guy this is a very well thought proposal to help fellow developers and project owners.
I’m an ex-consultant and digital banking professional (neo bank from ground up to 3mn users). together with a team of 5 developers and sr marketing professional we’ve been working on a DeFi platform.
We have self funded and completed staking derivatives and we were about to start executing our roadmap items like on chain/ off chain collateralized stablecoins. We were heavily impacted by Terra/UST crash and we would welcome such opportunities.
Thanks for all the comments. Let me address some of your questions:
The $400m ecosystem fund is split into two: SCRT Labs grants (denominated in SCRT) and the ecosystem fund itself.
Clearly, the grants denominated in SCRT have taken a serious beating, which means we will be more selective in which grants we approve and their value add to the Secret ecosystem. On the other hand, we will actually seek to approve grants that we see as extra beneficial at this time, so if you’re a capable team without a project, you likely have better chances of getting funded right now. We may also use this pool to increase the funding to specific selected Terra teams which we really want (we are open to extending offers that accumulate funding from both this new on-chain pool, SCRT Labs grants and delegations, to maximize our ability to attract the best builders).
The ecosystem fund is opt-in by any major fund that participates, and so it’s harder to rely on that when extending offers to Terra teams. It is also marked as a direct investment (for tokens or equity), which is irrelevant for most Terra teams.
Definitely in Agreement, let us reach out and help the Terra builders and bring more dev power into the ecosystems!
I am very much hoping to see some strong on boarding.
I read and understood the proposal before posting. I don’t appreciate you implying otherwise.
However I believe every proposal that involves use of funds, should have clear KPIs and metrics so we can know if the program was successful or not. So we can evaluate results. And use this knowledge for the future, to keep improving.
So even when the motivation is right and the proposal makes sense, if we don’t have any metric, it might be like taking shots in the dark.
Since there seems to mostly be support for this proposal, we’re going to go ahead and write the contract required for the upgrade + post a proposal this week.
