Overview
Two long-time community members, Rex Wu and Victoria Critchley, have found potential off-chain assets worth over $1.5 million that may legally belong to the Terra Classic (LUNC) community. To recover these funds, they are proposing the creation of a legal entity that can represent Terra Classic in court and with regulators. This legal effort will be fully self-funded by the co-signers, with no money requested from the Community Pool.
If successful, 80% of the recovered funds will go to the Terra Classic Recovery Fund to benefit the community, and 20% will be paid to the co-signers as a finder’s fee. If nothing is recovered, the co-signers receive no payment and absorb all costs.
Why It Matters
Terra Classic is still underfunded and needs resources to grow. Unlike other blockchains, LUNC has no major funding, VC support, or foundation. Many community goals like USTC repeg, developer grants, and validator support need more funds.
The co-signers believe these off-chain assets, possibly linked to pre-crash Terra, can be recovered legally—but only through a legal entity. Blockchains can’t go to court, so human representatives are needed.
Key Details :
1. The co-signers will create and run a legal entity to handle the recovery.
2. They will cover legal costs, estimated up to $100,000.
3. They will KYC and doxx themselves to regulators.
4. The entity will recover funds and send them to a Recovery Fund (not the Community Pool).
5. The community will later take over the legal entity after its job is done.
6. If no assets are recovered, the community pays nothing.
Why Not Use the Community Pool?
Legal risks tied to Terraform Labs (TFL) make it dangerous to put recovered money directly into the chain. A separate fund ensures safety and compliance. Courts may reject funding to the blockchain if it’s seen as still connected to TFL.
Process :
1. The legal entity will file official legal claims for the off-chain assets.
2. If successful, the funds (minus taxes and fees) go to the Recovery Fund.
3. The co-signers get a 20% finder’s fee only if money is retrieved.
4. The remaining 80% is for the LUNC community.
5. The entity will later be handed over to the community via governance.
Q&A Highlights
Why is this proposal needed now?
Legal options to claim the assets are closing soon. We must act quickly.
Who is behind this?
Rex Wu and Victoria Critchley. They’re using their own money and asking for nothing unless successful.
Will they be doxxed?
Yes, to courts, regulators, and financial authorities.
Can we trust them?
Their real names are on this proposal. They’re legally accountable.
Why a legal entity?
Blockchains can’t file lawsuits. A human-run legal entity is required to act on the community’s behalf.
What happens if no funds are recovered?
The community pays nothing. The entity is closed.
What authority is granted?
Only to retrieve and return off-chain funds. Nothing more.
Can the entity be used for other deals?
No. Its role is limited to this proposal only.
Any cost to the LUNC community?
No. The entire legal cost is paid by the co-signers.
Can the 20% fee change later?
No. It’s fixed. If no funds are found, no fee is paid.
Is this like the lost $4.2M multisig?
No. That opportunity is gone. This is about new leads.
What if only enough money is recovered to cover the fee?
Then that’s what happens. No more will be requested.
Why spend $100,000 on legal fees?
They believe they have a strong case. If right, the community gains over $1.5M.
Can more than $1.5M be recovered?
Yes, possibly.
What if more is recovered?
It could help fund validators, but that’s a separate topic.
Will the 20% fee grow with bigger recoveries?
No. It stays 20% no matter how much is recovered.
Why 20%?
To cover risk, legal bills, and months of unpaid research.
What does “disbursement under legal mandates” mean?
Some funds may require proof LUNC is not tied to TFL or Do Kwon to be released.
Can they steal the money?
No. Courts and lawyers will oversee everything. Funds go to the Recovery Fund, not the proposers.
Will the proposers handle the money?
No. Only the legal entity and authorized representatives.
Will this block burns or funding?
No. It brings new money in. It does not touch on-chain funds.
Can the community file the paperwork instead?
No. Only a legal entity with attorneys can do this properly.
Will they post updates?
Yes, when legally allowed.
What if courts reject Terra Classic as a client?
That’s why the legal entity exists—to represent the community.
What if the funds are delayed or taxed?
The 80/20 split applies after legal deductions. Everything will be reported.
Can the case be settled without another vote?
Yes, if it follows the terms already approved.
What happens after the case is done?
The entity will be given to the community for future use.
Why not use a no-win-no-fee law firm?
Those firms ask for 30% to 40%. This plan saves money for the community.
Why keep funds off-chain?
To avoid legal problems tied to TFL and to prevent risks like asset freezing.
Can funds go to the Oracle Pool?
No, for the same legal reasons. It stays in the Recovery Fund.
What if no one wants to manage the fund?
The money will wait safely until legal KYC conditions are met.
Can you reveal the asset sources?
Not now. Revealing them early could harm the legal process.
Is this tied to Risk Harbor funds?
No, but a future effort could target that. This proposal is separate.
Can the legal entity go beyond its powers?
No. It is legally bound to this exact scope.
Do you believe you’ll succeed?
Yes. The team believes in the case and is prepared to cover the costs.
Pros :
1. Potential recovery of $1.5M+ for the community
2. No cost or risk to the LUNC community
3. Legal compliance ensures safe disbursement
4. Transparent and traceable fund movement
5. Entity ownership handed over to the community after the process
Cons :
1. No guarantee of success
2. Upfront legal cost carried by the proposers
3. Time-sensitive and slow legal process
4. Requires legal compliance by fund stewards (KYC)
5. Full fund details cannot be revealed until legally safe