1/ This last week, @stablekwon presented an alternative to the The Terra Expedition Program, outlining a proposal that aims to position Terra at the center of the interchain.
A summary 🧵 of his thoughts 👇
A summary 🧵 of his thoughts 👇
https://twitter.com/stablekwon/status/1588146186371973120
2/ The Terra Expedition Program has 4 issues:
1️⃣ Inorganic developer incentives are short-lived
2️⃣ Nothing-at-stake committees are poor capital allocators
3️⃣ The proposed spending efficiency is too low
4️⃣ Devs need a compelling reason to build on Terra
1️⃣ Inorganic developer incentives are short-lived
2️⃣ Nothing-at-stake committees are poor capital allocators
3️⃣ The proposed spending efficiency is too low
4️⃣ Devs need a compelling reason to build on Terra
3/ 1️⃣ Inorganic developer incentives are short-lived
Historically, liquidity incentives across chains have led to non-sticky usership and liquidity. When the incentives dry up, so do the users and liquidity. Therefore, these type of incentives provide only a temporary boost.
Historically, liquidity incentives across chains have led to non-sticky usership and liquidity. When the incentives dry up, so do the users and liquidity. Therefore, these type of incentives provide only a temporary boost.
4/ 2️⃣ Nothing-at-stake committees are poor capital allocators
Free market forces are better at deciding which apps are valuable in an ecosystem than committees with no “skin in the game.”
Free market forces are better at deciding which apps are valuable in an ecosystem than committees with no “skin in the game.”
5/ 3️⃣ Proposed spending efficiency is low
With a proposed goal of increasing TVL on Terra by $300M, the Terra Expedition Program would spend roughly $1 to achieve $1 in TVL, which is not an effective use of community resources.
With a proposed goal of increasing TVL on Terra by $300M, the Terra Expedition Program would spend roughly $1 to achieve $1 in TVL, which is not an effective use of community resources.
6/ 4️⃣ Devs need a compelling reason to build on Terra
Chains need a unique value proposition in order to be successful long-term, so the Community Pool would be better spent building out Terra’s unique value proposition than on temporarily boosting metrics.
Chains need a unique value proposition in order to be successful long-term, so the Community Pool would be better spent building out Terra’s unique value proposition than on temporarily boosting metrics.
7/ Web3 will run on multiple chains, but an interchain ecosystem has not taken off yet due to:
👉 High cost of bootstrapping security - new networks generally have weaker security due to lower market caps of staked tokens
👉 High cost of bootstrapping security - new networks generally have weaker security due to lower market caps of staked tokens
8/ Cont’d…
👉 High cost of engineering - blockchains cost much more to launch than smart contracts
👉 User / liquidity fragmentation - wallet experiences across Cosmos are fragmented and require manual migration of assets
👉 High cost of engineering - blockchains cost much more to launch than smart contracts
👉 User / liquidity fragmentation - wallet experiences across Cosmos are fragmented and require manual migration of assets
9/ Terra is uniquely positioned to solve these problems, and we’ve already built the infrastructure to do it.
Let’s dive into what, exactly, this new vision looks like 👀
Let’s dive into what, exactly, this new vision looks like 👀
10/ The solution:
1️⃣ Bootstrap security through interchain “alliances” 🤝
2️⃣ Automate chain genesis and essential ecosystem tools via Feather 🪶
3️⃣ Have Station and Finder support multiple Cosmos chains, and allow for interchain execution via Interchain Accounts (ICA) ↔️
1️⃣ Bootstrap security through interchain “alliances” 🤝
2️⃣ Automate chain genesis and essential ecosystem tools via Feather 🪶
3️⃣ Have Station and Finder support multiple Cosmos chains, and allow for interchain execution via Interchain Accounts (ICA) ↔️
11/ Alliance 🤝
With the introduction of a new Cosmos module called “Alliance”, chains can enable staking of larger chain assets via liquid staking derivatives (LSDs).
With the introduction of a new Cosmos module called “Alliance”, chains can enable staking of larger chain assets via liquid staking derivatives (LSDs).
12/ 🤝 Cont’d…
In effect, this allows new chains to form economic alliances with larger chains, making the native asset more stable with yields coming in from larger and more liquid assets, and providing holders of larger assets with more avenues to generate staking yield.
In effect, this allows new chains to form economic alliances with larger chains, making the native asset more stable with yields coming in from larger and more liquid assets, and providing holders of larger assets with more avenues to generate staking yield.
13/ Feather 🪶
The numerous steps necessary to generate a new blockchain can be automated, lowering engineering costs and making launching a new chain as easy as a feather 🪶
The numerous steps necessary to generate a new blockchain can be automated, lowering engineering costs and making launching a new chain as easy as a feather 🪶
14/ 🪶 Cont’d…
Developers will be able to launch a new chain by using a simple deployment script and CLI. Validators can listen in to new chains launching via a daemon, and spin up validator and sentry nodes for chains that delegate above a certain % of the token supply.
Developers will be able to launch a new chain by using a simple deployment script and CLI. Validators can listen in to new chains launching via a daemon, and spin up validator and sentry nodes for chains that delegate above a certain % of the token supply.
15/ 🪶Cont’d…
Once a chain has launched, TFL's ecosystem tools can automatically add support 🛠
✅ An RPC endpoint via Mantlemint can be spun up for apps to connect to
✅ Users can start using Station & Finder
✅ Terrain & Terrarium can be extended to allow for dev support
Once a chain has launched, TFL's ecosystem tools can automatically add support 🛠
✅ An RPC endpoint via Mantlemint can be spun up for apps to connect to
✅ Users can start using Station & Finder
✅ Terrain & Terrarium can be extended to allow for dev support
16/ Cross-chain Station & Finder integrations & interchain execution via Interchain Accounts (ICA) ↔️
With over 1M installs, Station can and should be leveraged to execute for multiple Cosmos chains. Interchain Accounts can allow transactions on all supported chains from Terra.
With over 1M installs, Station can and should be leveraged to execute for multiple Cosmos chains. Interchain Accounts can allow transactions on all supported chains from Terra.
17/ By solving for security, tooling entry costs, and user fragmentation via Alliance, Feather, and Station cross-chain execution via ICA, it will be more attractive to launch a blockchain vs a smart contract for a variety of use cases 🚀 🚀
18/ Community Pool deployment 💰
The Community Pool can be used to incentivize the adoption of $LUNA Alliance staking (subsidize LSD yield). Over time, the goal is for $LUNA to become one of the most widely used assets for interchain security across the Cosmos.
The Community Pool can be used to incentivize the adoption of $LUNA Alliance staking (subsidize LSD yield). Over time, the goal is for $LUNA to become one of the most widely used assets for interchain security across the Cosmos.
19/ Our future is bright, #LUNAtics 🌕
We are continually thinking about how to best support the community and welcome your thoughts and discussion on Agora 👇
agora.terra.money/discussion/725…
We are continually thinking about how to best support the community and welcome your thoughts and discussion on Agora 👇
agora.terra.money/discussion/725…
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