Source from:

• https://validator.info/terra-classic/governance/12166
• https://common.xyz/terra-luna-classic-lunc/discussion/26597-proposal-vesting-contract-payment-option-for-spend-proposals

Vesting Contract Payment Option for Spend Proposals

Authored by: @ClassicNodes and @Luncgoblins

Objective:

The Terra Classic Vesting contract was designed to manage governance-approved payrolls on the Terra Classic blockchain.

This proposal aims to allow the Terra Classic Vesting contract as a second option for developers requesting payment through Terra Classic governance, if the following criteria is met:

The job is scheduled to take more than 45 days.
The payment request is more than $5,000 in total.
The option to request payment via the vesting contract does not replace Proposal #11889. This proposal would be supplemental to Proposal #11889, and should only be viewed as a second option for spend proposals that meet the criteria as defined above.

Terra-Classic-Vesting Repository: https://github.com/fragwuerdig/terra-classic-vesting

Audit of Vesting Contract: https://app.solidproof.io/projects/terra-classic-vesting

The Vesting Smart Contract

The Terra Classic Vesting contract was designed to manage governance‐approved payrolls on the Terra Classic blockchain.

The Terra Classic Vesting contract receives funds from a Community Pool Spend proposal and then distributes them in a pre-configured vesting schedule, e.g. monthly or on specific dates.

The recipient (e.g. a developer or development team) can then claim funds at or after the release dates.

Initialization Process

A community pool spend proposal can request a payment to the Terra Classic Vesting contract account, and once the proposal passes, it automatically sends funds to the contract to be paid out via a vesting schedule.

The initialization process sets the owner to the Terra Classic Governance account, ensuring that administrative control over the vesting schedule remains exclusively with Terra Classic governance.

The administrative authority cannot be reassigned.

Cancel Function

The Terra Classic Vesting contract gives governance the control to cancel a vesting schedule in case the work is deemed incomplete, or should the contract need to be canceled for other reasons.

In such a case, unvested funds would be returned to the Community Pool.  

Conclusion

The Vesting Contract Payment option is a second option for payment, when specific criteria within a spend proposal is met. This payment system is better suited for long term jobs, removing a potential barrier to entry for development teams. With two available payroll options, the Terra Classic chain would be better suited to attract more development teams.