Terraform Labs has announced key steps following a bankruptcy court order, including reopening the Shuttle Bridge and destroying a significant number of LUNA tokens as part of its restructuring efforts.
Points
- Terraform Labs to reopen Shuttle Bridge following court order.
- Users will have a 30-day window to redeem assets.
- 150 million LUNA tokens to be destroyed.
- Additional LUNA tokens staked by validators will also be deactivated and destroyed.
- Measures are part of Terraform Labs’ restructuring plan to stabilize LUNA’s value.
Terraform Labs （TFL） has announced significant developments in its Chapter 11 case following a bankruptcy court order. The court has authorized TFL to take crucial steps, including reopening the Shuttle Bridge and destroying a substantial number of LUNA tokens, marking a pivotal moment in the company’s restructuring efforts.
The Shuttle Bridge, an essential infrastructure for transferring assets between Terra and other blockchains, had been previously closed. As per the court’s directives, TFL will transfer all assets held in the Shuttle Bridge wallet to a new wallet and introduce a simplified interface for users to redeem their assets. Users will have a 30-day window to complete this redemption. After this period, TFL intends to permanently close the Shuttle Bridge, with any remaining assets in the wallet to be destroyed.
Additionally, TFL will cancel the distribution and destroy 150 million LUNA tokens obtained from Terra community funding. This move aims to reduce the circulating supply of LUNA, thereby stabilizing its value. TFL will also deactivate and destroy 125 million LUNA currently staked by 49 validators and 2.5 million LUNA used for liquidity provision.
These actions are part of TFL’s comprehensive strategy to emerge from bankruptcy and reposition Terra as a stable and reliable player in the cryptocurrency space. The measures follow a settlement reached between TFL and the United States Securities and Exchange Commission, addressing regulatory concerns and ensuring compliance with federal securities laws.
解説
- Reopening the Shuttle Bridge allows users to reclaim their assets, building trust in TFL’s restructuring process.
- The destruction of LUNA tokens is a strategic move to create scarcity and potentially increase the token’s value.
- Compliance with regulatory requirements and cooperation with the SEC reflect TFL’s commitment to adhering to legal standards.
- These measures are crucial for restoring confidence among the Terra community and investors, positioning TFL for a more stable future.