- Terraform Labs is set to reopen the Shuttle Bridge, enabling asset redemption on Terra Classic, as per court order.
- TFL will destroy 150 million LUNA tokens to reduce circulating supply and stabilize the cryptocurrency’s value.
- The Chapter 11 plan, including these measures, awaits full court approval, expected by late September 2024.
Terraform Labs (TFL) has announced key actions following a bankruptcy court’s order in its Chapter 11 case. The court has authorized TFL to reopen the Shuttle Bridge and destroy a large number of LUNA tokens, marking a significant step in the company’s restructuring process.
According to an update on X by Terra, TFL will reopen the Shuttle Bridge, allowing users to redeem sealed assets on Terra Classic. The Shuttle Bridge, a critical infrastructure for asset transfers between Terra and other blockchains, was previously closed. TFL plans to move all assets from the Shuttle Bridge wallet to a new wallet and simplify the redemption process for users.
Shuttle Bridge Reopening
The Shuttle Bridge will be reopened for a 30-day period, during which users can redeem their wrapped assets. After this window, TFL will permanently close the Bridge and destroy any remaining assets in the wallet. This move is aimed at facilitating the redemption process and ensuring a smooth transition for users.
In an effort to reduce the circulating supply of LUNATerra’s Do Kwon Legal Victory Spurs 87% Surge in LUNA Value, the court has authorized TFL to destroy 150 million LUNA tokens acquired from Terra community funding. This destruction is part of a broader strategy to stabilize LUNA’s value and rebuild trust among the community and investors.
Additionally, TFL will deactivate and destroy 125 million LUNA currently staked by 49 validators, along with 2.5 million LUNA used for liquidity provision. This measure is intended to further reduce the supply and support the value stabilization efforts.
Future Plans
TFL’s Chapter 11 plan, which includes these measures, is still awaiting full approval from the bankruptcy court and is not expected to take effect until late September 2024 at the earliest. The plan is part of TFL’s comprehensive strategy to emerge from bankruptcy and reposition Terra as a stable and reliable player in the cryptocurrency market.
