The DAO rarely votes on a $40 million protocol spend on a sports sponsorship. Those who own Terra have been voting on just that this week. It seems to be a first-of-its kind event.
Terraform Labs founder Do Kwon proposed this week that LUNA holders vote on a new five-year. A $38.5 million sponsorship deal with a team from one of the US’s major sports leagues (MLB, NBA, NFL, NHL). It’s possible this is the first time a DAO or similar organization has voted on a sponsorship.
The proposal is the second of three major announcements that have come out as part of the Terra campaign. It is called Redacted.
Three Statements of Terra
That is what we are aware of. It was just a few weeks ago that one of the first sections of the three-part announcement was made public. Terra’s Luna Foundation Guard, also known as the LFG, was the first to do so.
The proposed funding comes from the community pool, and the proposal itself is based on a few main points. The first is the narrative. It says that the top decentralized stablecoin machine getting a sponsorship of this caliber is a sign. When it comes to a larger DeFi to the mass’s movement.
The second idea is that being bold is mostly for growth. And the last reason is probably best stated in the proposal itself. Encouraging DAO governance to be as creative as possible so that it can reach its full potential. There is a good chance that the team that this deal is with will play in the NBA. The MLB, NHL, and NFL are all possibilities, and the NFL has a chance, but it’s not very likely. Luna is the person who makes the UST stablecoin work. With the new sports sponsorship deal, Luna wants to get a lot of attention.
The suggestion has sparked much debate about how often centralization the Terra network and Terraform Labs team should have. Also, the community has reason to believe Do Kwon’s vision of filled decentralization is well on its manner.
There is a killswitch called Armageddon that can decentralize the Terra ecosystem and disconnect it from Terraform Labs. Kwon has talked about this killswitch. It’s thought that once that mode is in place, these remaining funds in the TFL wallet will be burned. As Terra moves forward, it will be interesting to see moves like this. And how one will affect this decentralization in the future. Even though Terra isn’t as decentralized as other players in the space, it’s still on its way.
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