12160 | Freeze LFG Assets 1.86 B ustc
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Freeze LFG Assets 1.86 B ustc
We propose freezing LFG funds as a precautionary measure -> https://common.xyz/terra-luna-classic-lunc/discussion/26704-onchain-signaling-proposal-to-freeze-lfg-assets-186-b-ustc-
On-Chain Signaling Proposal to Freeze LFG Assets 1.86 B ustc +
The governance community must take proactive measures to ensure that the 1.86 billion USTC and other assets held in the Luna Foundation Guard (LFG) reserve are managed in a transparent and responsible manner.. While prior statements have suggested that on-chain assets were not to be sold, we must act preemptively to protect the integrity of the Terra Classic ecosystem.
This proposal seeks community consensus on freezing the LFG assets to ensure that any potential future actions regarding their use or liquidation occur transparently and with full community governance. Should this proposal pass, any movement of these funds will require an additional governance proposal to unfreeze them, ensuring decentralized oversight.
Background.
- โOtherwise, the judgment requires the Defendants to burn or destroy private keys in Terraformโs possession to wallets or blockchain assets holding UST, MIR, LUNA, wLUNA, and LUNA 2.0 (โTerraform Crypto Assetsโ), protecting investors from additional unregistered offers and sales of securities.โย ย page 5ย https://storage.courtlistener.com/recap/gov.uscourts.nysd.594150/gov.uscourts.nysd.594150.272.0.pdf
Previously, an on-chain signaling proposal was introduced to burn these assets via a chain upgrade but failed. Instead, freezing them offers the community flexibility and control while preventing any premature actions.
Proposal Details This proposal is a signaling proposal designed to gauge community support for freezing the LFG assets. If passed, a future technical proposal will be required to implement the freeze through a chain upgrade.
By freezing these assets, we:
Ensure that any movement of these funds requires explicit community approval.
Prevent any unforeseen liquidation that could destabilize the ecosystem.
Allow future governance to decide the best course of action in a transparent manner.
The freeze would require a chain upgrade, and should this proposal pass, developers will begin the necessary work to implement this feature.
Conclusion The freezing of LFG assets is a measured and responsible step to protect the Terra Classic ecosystem while allowing for future decision-making through transparent governance. This proposal ensures that the community retains full control over these assets, preventing any unilateral action by external parties.
This is a signaling proposal only, and should it pass, a technical implementation proposal will follow. Let us act decisively to safeguard our ecosystem.
