Terra Community Trust#


What is a trust?#

  • A trust is a legally binding arrangement in which the trustees are under fiduciary duties to hold and manage the assets as directed in the trust instrument and in accordance with the purposes of the trust. The trust has no legal personality and so must act through its trustees.

  • The trust instrument sets out the terms upon which the assets are to be held and enables all parties to know their rights and duties.

What assets are held and controlled by the Terra Community Trust?#

  • The Terra Community Trust holds all of the intellectual property rights to TERRA, LUNA, and UST.

Who controls the Terra Community Trust?#

  • Through community proposals, each member of the Terra Community Pool may direct the trustees as to the use of the assets held.

  • The trust and trustees are managed consistently with the governance protocol of the Terra Blockchain and, with a few exceptions (i.e. no fraud or illegal or unethical actions), the trustees must manage the assets as directed by the Terra Community Pool through its community proposals.

  • If directed by the community, the trust has the ability to buy and sell property and enter into contracts, among other rights and privileges.

What will be the purposes of the Terra Community Trust?#

  • The Terra Community Trust and its trustees must (i) execute and carry out community-approved proposals to the extent those proposals relate to the assets held by the trust, (ii) hold intellectual property and enter into agreements relating to such intellectual property with third parties for the benefit of the Community, and (iii) do all other acts and things that may be incidental to, or desirable to further the above purposes.

Who are the trustees of the Terra Community Trust?#

  • The initial trustees of the Terra Community Trust are Ryan Moore and Remi Tetot, and the initial enforcer of the trust is Gabriel Shapiro; however, the community may vote to replace any one of these individuals at any time.

What is a fiduciary relationship?#

  • In general, a fiduciary relationship requires a trustee at all times to act honestly and in the best interests of the purposes of the trust. The trustees’ duties include, amongst others, the duties of good stewardship, to act as a prudent person of business and to act with reasonable skill and care.

  • The enforcer’s duty is to ensure that the trustees administer the Trust in accordance with its purposes and the trustees must in turn “account” to the enforcer for their stewardship.

What will happen to the assets if the Terra Community Trust is terminated?#

  • The fate of the Terra Community Trust and its assets are in the hands of the Terra Community Pool. If the community votes to terminate the trust, the trust will terminate, and the assets will be distributed as voted upon by the community.