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Terra LUNA Holders Vote on a $40M Sports Sponsorship Deal
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Terra LUNA holders have held a DAO vote that will mark a one-of-a-kind event for the Terra ecosystem. This DAO vote revolves around a multi-year $40M protocol investment on a sports sponsorship deal.
The founder of Terraform Labs, Do Kwon, presented this proposal to the Terra community last week. This proposal revolves around a major sports sponsorship deal with an unnamed team.
Terra Luna’s $40M sports deal
LUNA holders will be part of a voting proposal that will determine a five-year deal with one of the leading sports leagues in the US. These leagues include MLB, NBA, NFL and NHL. The deal will cost the Terra community around $38.5M.
It is the first time in the sports sponsorship sector that a DAO will conduct a vote to partake in a sports deal. The proposal is the second major announcement on the Terraform Labs. Terra has been working on growing its ecosystem, and it has launched a campaign known as REDACTED.
The campaign has been divided into three major announcements. The first announcement regarding this happened a couple of weeks ago. At the time, Terra announced the formation of the Luna Foundation Guard (LFG).
Through these series of announcements, Terra seeks to inspire “the creativity of DAO governance to realise its full potential.” The funding for these proposals will come from the community pool. The proposal offers support to some of the major components of the Terra ecosystem.
The first piece of this campaign is the narrative. Terra wants to become the leading stablecoin network. By securing a $40M sponsorship deal, the network believes it will bring “DeFi to the masses.” The second piece of the campaign is to make bold decisions and support the ecosystem's growth. The third and final piece supports the DAO and ensures that it can achieve its full potential.
While Terra has not stated the league involved in this sponsorship, the most likely target is the NBA. The other major leagues are the MLB and NHL. Both the NBA and MLB have made deals with some leading cryptocurrency platforms. As for the NFL, there is a slight chance that it will partner with Terra.
Terra wants to achieve full decentralisation
The Terra network is not as decentralised as the other blockchain networks. The recent proposal of having a DAO vote on sports sponsorship has triggered a debate about the pursuit of decentralisation by Terra.
The Terra ecosystem's centralisation level comes from the closeness between the Terra network and the team at Terraform Labs. The team has a wallet with a large amount of LUNA tokens. However, Do Kwon has been transitioning the Terra network into being fully decentralised. The recent campaign has given the community much optimism that the promised level of decentralisation could be on the way.
Kwon has earlier stated that Terra has a feature dubbed “killswitch” that could push the network towards full decentralisation, and Terraform labs would no longer be attached to the network. Some community members believe that it will burn the LUNA tokens on the Terraform Labs wallet once the feature is executed. While this feature might be a long way to launch, the DAO vote on a multi-year sports sponsorship is a step in the right direction.
To learn more about this token visit our Investing in Terra LUNA guide.
