We prove that the open subvariety $\operatorname{Gr}_0(3,8)$ of the Grassmannian $\operatorname{Gr}(3,8)$ determined by the nonvanishing of all Plücker coordinates is schön, i.e., all of its initial degenerations are smooth. Furthermore, we find an initial degeneration that has two connected components, and show that the remaining initial degenerations, up to symmetry, are irreducible. As an application, we prove that the Chow quotient of $\operatorname{Gr}(3,8)$ by the diagonal torus of $\operatorname{PGL}(8)$ is the log canonical compactification of the moduli space of $8$ lines in $\mathbb{P}^2$, resolving a conjecture of Hacking, Keel, and Tevelev. Along the way we develop various techniques to study finite inverse limits of schemes.