12212 | Boosty Labs applies for Development of Classic DEX on Terra Classic

Source from:

• https://validator.info/terra-classic/governance/12212
• https://discourse.luncgoblins.com/t/community-owned-classic-dex-deflationary-burn-engine-for-terra-classic/353
• https://docs.google.com/document/d/1J9lBqy59Pe5kjqB0_PgjrTtTo2HCp2T7jel5CRL1YMc/edit

Classic DEX: community-owned DEX with spot, perps, liquidity routing, LP rewards, and automated dual burns for LUNC/USTC.

Built by Boosty Labs.

Full proposal: https://docs.google.com/document/d/1J9lBqy59Pe5kjqB0_PgjrTtTo2HCp2T7jel5CRL1YMc/edit

Community-Owned Classic DEX: Deflationary Burn Engine for Terra Classic – Open Discussion & Refinement

Terra Classic Community,

Happy New Year 2026!
With Binance’s massive December burn behind us and excitement building for real utility, let’s discuss a major BUIDL opportunity:

Classic DEX – a fully community-owned, Non-KYC – Multi-chain decentralized exchange (spot trading + perpetual futures).

Key Goal: Turn trading volume into the largest on-chain USTC burn engine in crypto, while rewarding LUNC/USTC holders with powerful incentives.

Core Mechanics:

Fee Distribution (100% of all trading fees):

• 70%: Automatically buy back USTC on-market and burn forever (fully on-chain, verifiable by anyone).
• 10%: Will go to CP.
• 10%: Referral program rebates (paid to referrers).
• 10%: Multiplier boost pool (funds extra cashback for traders and referrers).
  Trading & Collateral:
• Spot + perpetual futures.
• Collateral restricted to only LUNC and USTC (no other assets).
• Multi-chain support (Terra Classic native + bridges to 2-3 EVM/Cosmos chains for broader liquidity/volume).
  Incentives to Bootstrap Volume:
• Base cashback multiplier (paid from trader’s own generated fees):
• 100% LUNC collateral → 1.5× multiplier.
• 100% USTC collateral (non-Parked) → 2× multiplier.
• Parking Mode (USTC-only, encourages holding/depositing USTC):
• Flexible Parking: Withdraw anytime (optional ~24-hour cooldown to deter bots) → +2.25× extra (total 4.25× multiplier).
• 21-Day Parking: Locked for 21 days → +3× extra (total 5× multiplier).
• Referral Bonus: Base 10% of referred trader’s fees; +0.75× extra if the referred trader uses 21-day USTC Parking.

All extra multipliers are sustainably funded solely from the 10% boost pool – no inflation or dilution.

This design creates a massive flywheel: Incentives drive traders to deposit/park USTC & use LUNC → High volume → Huge fees → 80% auto-burns USTC → Increased scarcity → Price appreciation → Even more volume.

Potential impact: Capturing even a small share of perp DEX markets could lead to burns 100-1000x larger than current levels.

Next Steps – Pure Discussion Phase (No Voting or Spending Yet):

This thread is for open feedback and refinement only. Let’s collaborate before any formal proposal.

1. Refine the mechanics together:

• Should we adjust fee split (e.g., more balanced burns for LUNC vs USTC)?
• Tweak multipliers or Parking options?
• Add/remove features for MVP?
  Share your ideas/suggestions!

2. Development & Cost Estimate:

• Target: Fork proven protocols (e.g., GMX for perps, Uniswap-style for spot) with custom incentives, collateral rules, and on-chain auto-buyback/burn.
• Realistic cost for MVP : $50,000–$100,000 USD.
• Timeline: 8-12 weeks with an experienced team.

3. Builder Selection Process (if we move forward):

• I will reach out to 3-5 reputable Cosmos SDK-experienced development companies/teams.
• Publish all quotes publicly here, including: company name, contact details, exact price, timeline, milestones, and references.
• Full community vetting: Everyone is encouraged to contact the companies directly, check track records, audit history, and report any concerns or red flags here for group investigation.
• Only the most transparent and trusted option advances.

4. Funding Considerations:

• Primary: Community pool spend (if sufficient balance and community support).
• Post-launch: DEX fees can cover ongoing costs and potentially reimburse/replenish the pool over time.
• No on-chain spend proposal until strong consensus here – we discuss/refine first.

This is 100% community-driven: No team profits, no pre-mines, full governance control via Agora after launch.

What are your thoughts? Excited? Suggestions for improvements? Concerns about mechanics, costs, or risks? Let’s make this the best possible version together.