Back to the list

Terra Classic Should Have Legal Representation: Edward Kim

source-logo  thecryptobasic.com 25 March 2023 10:15, UTC

The developer asserted that legal counsel had become necessary for the Terra Classic ecosystem, considering the uptick in global enforcement actions.

Edward Kim, Terra Classic (LUNC) developer and Computer Science Professor at Drexel University has proposed for the community to contract a legal representative for the Terra Classic DAO. Kim’s proposition comes on the heels of the recent uptick in enforcement actions in the U.S., particularly from the SEC.

As per Kim’s recommendation, having legal counsel for the Terra Classic DAO can aid in minimizing the risk of exposure to enforcement actions by providing informed guidance to core contributors and the broader community on best practices. He also reassured that despite the introduction of legal representation, the decentralized structure of the community would remain unchanged.

Kim revealed that he and others spent several months searching for the ideal legal firm within the U.S. and ultimately selected Horizons Law and Consulting Group based on their impressive track record in the crypto industry. The firm has previously worked with noteworthy projects such as Osmosis and Synthetix.

Horizons’ Proposed Work for Terra Classic

Kim shared that Horizons has recommended the establishment of an offshore foundation company in the Cayman Islands, which would come at the cost of up to $100,000. Though the required funds would be drawn from the community pool, Kim emphasized that a separate governance voting process would be conducted to make the decision.

The Terra Classic DAO needs to raise $20,000 (~164M LUNC) as a retainer fee for Horizons. Along with offering legal advice on various matters, Horizons will interact with a dedicated committee created by the community on legal matters. The firm will also answer questions from the wider community.

Kim’s proposal also includes some clarifications on the role of the legal counsel. For instance, the law firm will not represent all LUNC holders or automatically represent core contributors. Instead, a set of guidelines will be developed later to determine the approach to representation.

Kim confirmed that the legal firm would represent teams or individuals working towards advancing the Terra Classic ecosystem. The community will also undergo restructuring of existing groups and implement new guidelines to avoid regulatory issues in the future.

The proposal has generated a mixed response from the community, with some members viewing it as a positive move. In contrast, others remain unconvinced, citing the decentralized nature of Terra Classic, which makes them question the need for legal counsel.