This proposal requests a grant from the community pool to fund the development and subsidize operations of the Entropy Beacon and related infrastructure. This will surely encourage the development of Terra 2.0, adding value to the whole ecosystem.

Profitability is a major impediment for utilities like this. As a result, Entropy Beacon’s design is simple to use and has low fees, containing zero profit potential. In this article, you will discover more about this important step in the Terra Luna blockchain.

Terra Luna Prop 979 Request Community Funding

Terra Luna is not interested in obtaining VC money, which will almost certainly require monetization and fee systems. As a result, this proposal asked for the utilization of community funds to cover development and infrastructure expenditures.

For that purpose, Entropy Beacon asked for 50,000 LUNA from the communal pool. The voting for the proposal ended yesterday. The proposal has passed with 67% votes YES.

Grant Distribution to Develop Entropy Beacon

The distribution of the grant is as follows:

  • 40% – The creation of a decentralized subsidization pool for anyone hosting workers. This will step in to compensate workers, allowing removing of the Beacon system’s “protocol charge” and simplifying overall system operation. Furthermore, these assets will serve as the foundation for a “vault” that would be used to offer future utility, such as flash loans, on Terra.
  • 10% – Some fundamental infrastructure costs for starting. Entropy Beacon expects that the volume on the beacon will be minimal in the early phases, therefore operating a worker may not be profitable or worthwhile to any member. To avoid attacks caused by extended delays, they will put workers on servers that they own and pay for, most likely at a loss. This will help in paying for the servers over time. If these payments are ever discovered to be unnecessary, they will deposit them in the subsidization pool.
  • 50% – Past and future development funding. Because they want to provide the best community tool possible, this project will never be profitable.
Comparing Entropy beacon with Current Solutions

Existing solutions on Terra 1.0 like Kujira weren’t safe or random enough for deployment by any application requiring the transfer of real money. For example, Terrand operated by posting the blockchain results of Cloudflare’s League of Entropy beacon. This was inefficient, unsafe, and predictable.

Therefore, Chainlink’s VRF is one of the solutions from other chains, besides Terra. Chainlink’s VRF has limitations of the tokenomics of their LINK token in addition to obviously not being available on Cosmos-based networks like Terra. Chainlink VRF requests for randomization either require “subscription management” or some kind of LINK token payment.

This is expensive and negatively affects anyone who wants to use Chainlink as a developer. The Entropy Beacon, on the other hand, uses LUNA instead of a third-party token. It only requires gas fees for paying the calling contract. If approved, the “protocol fee” that is now used to cover the expense of maintaining an off-chain worker will be reduced to zero and subsidized.

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