Terra requests $38M from community

Terra (LUNA/USD) requested 40 million UST to fund a Terra brand partnership with the sports franchise, which is a member of a major American professional sports league.

Breaking with funding tradition?

Most community spend governance proposals have involved allocating funds for liquidity mining (LM) incentive programs, grants for funding ecosystem projects, and ancillary initiatives targeting broader ecosystem development over the past year.

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DAO governance is incipient according to the platform, and only the imagination limits the potential design space for capital allocation and treasury management. Terra’s ultimate goal is mainstream adoption and they urge taking steps towards that end goal.

A novel community spend initiative

In a first-of-its-kind initiative fusing the real world with the metaverse, Terra asks its community to provide $38.15 million to a legendary sports franchise in a major American professional sports league.

They can’t reveal its name for legal reasons. This will only be possible after voting has ended and the parties have reached an agreement.

Exclusive 5-year partnership deal

The funds will be taken from the community pool and invested in a 5-year exclusive partnership deal to promote Terra as one of the franchise’s leading partners.

The franchise will receive $37.50 million upon deal execution, which will cover the annual fees of $7.50 million a year for 5 years. In addition, there is the sum of $650,000 to cover renovation, construction, and redesign costs.

Franchise looking to enter crypto world

The franchise is looking to enter the world of crypto. It offers cutting-edge fan experiences and can provide Terra with brand exposure to the most valuable non-naming rights a sports franchise can make available.

Terra gets naming and branding rights

The leading sports franchise’s most premium club and lounge will take the name of Terra. Its name will change to the Terra Club and feature Terra’s logo and messaging.

An unprecedented and groundbreaking opportunity

Terra summarizes that this partnership agreement would represent an unprecedented and groundbreaking opportunity to generate earnings from access of a household and well-reputed franchise to the Terra community.