A Terra community member, who goes by the name Cephii1, envisioned a proposal on behalf of the Terra community members. The proposal is for the distribution method for the 0.5% emergency LUNA allocation.

The user wrote that the proposal had been made on behalf of the community members, validators, TFL, and others. The plan is also aimed at boosting the Terra Ecosystem Revival Plan 2.

The growing debate over properly distributing the 0.5% emergency LUNA paved the path for the plan to allocate a 10% LUNA supply for the developers. But the plan to allocate the emergency fund was not specified by the Terra team.

After pooling ideas from the community members, the user laid down the different cohorts who are eligible to receive the emergency fund.

The proposal initially focused on smaller projects. Polls taken within the community chats indicate projects require between $100-300K for 6 months of runway: reads the report. The community also identified around 50 eligible projects.

The plan also proposed distributing $100-300,000 in LUNA to qualified pre-PMF teams. Adding to the proposal, the user also suggested an additional $500k-$1M in LUNA to the projects Coinhall, Terrascope, Setten, SCV, Terra One, Random Earth, Knowhere, Leap Wallet, and TFM.

According to the proposal, the total of 5 million LUNA in the emergency fund could be distributed as follows: 2.5 million Luna between projects that debuted on Terra Classic and achieved product-market fit and TVL (PMF and TVL); 1 million LUNA among projects that debuted on Terra Classic and achieved product-market fit but did not have measurable TVL (PMF but any TVL); and 1.5 million LUNA across initiatives (pre-and post-launch) that failed to establish product-market fit (pre-PMF).