According to a tweet from the company’s official Twitter account, these projects will be able to migrate to Polygon and continue with their goals. According to Techcrunch, the fund will receive an initial $450 million investment from Polygon and an additional $100 million from the solution’s ecosystem fund.
After the collapse of its native stablecoin UST, the crypto community has been all eyes set on the Terra (LUNA) ecosystem. Because of the burn/mint mechanism linked LUNA and UST, both tokens suffered the same fate and ended up trending towards $0 due to relentless selling pressure.
Following the crash, exchange platforms delisted LUNA and UST, resulting in significant losses for investors and a disaster for any projects deeply entangled with Terra. According to Ryan Wyatt, CEO of Polygon Studios, Polygon is providing a solution to these projects and their communities. He stated:
“I think what happened with the collapse of Terra is so unfortunate on so many different levels. It has significant second order effects on great projects, developers, founders and innovators. So no matter where you’re at — whether you’re at Polygon or a part of the greater web3 ecosystem — you want to figure out how to help these folks.”
The Terra Developer Fund is designed to be an “uncapped” financial aid tool despite the initial investment. Wyatt claims that they will not limit the amount of resources they are willing to commit to these efforts. Wyatt continued:
I don’t want to put a finite cap on [the fund], because the goal is to make sure we have capital set aside to help all developers who want to come over to Polygon do so.
The First Terra Project To Be Onboarded On Polygon
OnePlanet, an NFT marketplace and launchpad, will be one of the first projects to migrate to the Ethereum second layer. Before relocating to Polygon, the project claimed to have conducted “extensive research.”
🪐OnePlanet is Landing on @0xPolygon
OnePlanet has partnered with Polygon to become a dedicated marketplace for all migrating Terra NFT projects to the Polygon ecosystem.
Join us to migrate to Polygon: https://t.co/cjjV8D9TGh
Learn more about our next moves in 🧵👇 pic.twitter.com/mgVXhh0eXP
— OnePlanet ˡᵃⁿᵈⁱⁿᵍ ᵒⁿ ᴾᵒˡʸᵍᵒⁿ (@OnePlanet_NFT) May 25, 2022
The team behind the NFT marketplace contemplated migrating to other blockchains but ultimately chose Ethereum’s second layer due to its levels of adoption, stability, and other factors. The team has started to build the infrastructure required to complete the migration.
As Polygon Studios clarified, OnePlanet will be an important partner in the Terra Developer Fund:
“Together with OnePlanet, 0xPolygon will help fund the relocation of these projects to help support re-development and protect their communities. The funding will cover technical migration support to help assist in the complex process of porting projects across chains.”
Wyatt concluded by claiming that the Ethereum second layer initiative could bring tangible solutions to projects at a time when everything around Terra appears to be collapsing:
“It’s good for the ecosystem and good for the developers, so we realised we have to be solution-oriented to help these folks figure out how to make a strategy out of Terra and back into an ecosystem and chain that’s supported and has users.”
MATIC is trading at $0.6, down 3% in the last 24 hours at the time of writing.