Terra Luna Bankruptcy Update: Shuttle Bridge Reopens, LUNA Tokens to Be Burned
The post Terra Luna Bankruptcy Update: Shuttle Bridge Reopens, LUNA Tokens to Be Burned appeared first on Coinpedia Fintech News
In a significant development for Terra Luna, the bankruptcy court has issued a new order authorizing several crucial actions for Terraform Lab (TFL). These include reopening the Shuttle Bridge for wrapped asset redemptions and implementing a plan to transfer and burn a substantial amount of LUNA tokens.
Here’s what you need to know about these changes and their potential impact.
Shuttle Bridge Reopens for Limited Time
The court’s order allows Terraform Lab to reopen the Shuttle Bridge, a platform used for redeeming wrapped assets on Terra Classic. This will allow users to access their assets through a new, more secure interface.
1/ Dear Terra community,We would like to inform you about a recent bankruptcy court order in TFL’s chapter 11 case authorizing TFL to do the following: 1) Reopen the Shuttle bridge for the redemption of wrapped assets on Terra Classic; 2) Undelegate & burn the 150M LUNA…— Terra Powered by LUNA (@terra_money) July 19, 2024
The Shuttle Bridge will remain operational for up to 30 days after TFL’s Chapter 11 plan becomes effective. After this period, the bridge will be permanently shut down, and any remaining assets will be burned. The Chapter 11 plan has not yet been approved and is expected to take effect no earlier than late September 2024.
This timeline coincides with the General Bar Date for filing claims, which is set for August 9, 2024, at 5:00 p.m. ET. This deadline is crucial for creditors with claims against TFL that arose before January 21, 2024, or against TLL that arose before July 1, 2024.
Transfer and Burn of LUNA Tokens
In compliance with a settlement with the SEC, TFL will also begin the process of transferring 125 million LUNA tokens from 49 validators, as recommended by the Terra Delegation Committee.
4/ Undelegating & burning LUNAAlso under the bankruptcy court order, and in compliance with the settlement reached between TFL and the SEC, TFL will begin the undelegation process of the 125M LUNA currently staked with the 49 validators selected by recommendation of the Terra…— Terra Powered by LUNA (@terra_money) July 19, 2024
Additionally, 25 million LUNA tokens designated for liquidity provisioning will also be burned. This move aims to reduce the circulating supply of LUNA and manage the token’s value.
Impact on Terra Classic and LUNA Market
These actions reflect TFL’s efforts to restructure and address financial obligations during the bankruptcy proceedings. They hold significant implications for the Terra Classic community and LUNA’s market dynamics, potentially influencing the token’s value and the broader ecosystem.
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Is this the beginning of the end for Terra Luna’s troubles, or is there more drama to unfold? Share your predictions.
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