Terraform Labs (TFL), the development company behind the Terra blockchain, has released a statement outlining the significant changes following their recent bankruptcy. The announcement addressed to the Terra community details the reopening of the Shuttle bridge and the burning of 150 million LUNA tokens.
Under a recent bankruptcy court decision, TFL was authorized to reopen the Shuttle bridge to redeem wrapped assets in Terra Classic. The company plans to move all assets held in Shuttle bridge wallets to new, more secure wallets. A simplified Shuttle bridge interface will be available, allowing users to redeem wrapped assets from their bridge wallets until 30 days after TFL's Chapter 11 plan goes into effect.
At the end of this period, TFL plans to close the Shuttle bridge permanently and all remaining assets will be burned. The proposed Chapter 11 plan has not yet been approved by the bankruptcy court and is not expected to go into effect until the end of September 2024 at the earliest.
In accordance with the consensus reached between TFL and the SEC, TFL will begin the process of de-delegating the 125 million LUNA currently staked with 49 validators selected with the recommendation of the Terra Delegation Committee. After LUNA is reclaimed, both 125 million LUNA used for delegations and 25 million LUNA for liquidity purposes will be burned.
*This is not investment advice.