The post Terra Luna Receives Key Bankruptcy Court Order: Major Changes Ahead appeared first on Coinpedia Fintech News
In the case of Terra Luna, the bankruptcy court has issued a new order authorizing several crucial actions for Terraform Lab (TFL) This move includes reopening the Shuttle Bridge for wrapped asset redemptions and 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.
Reopening the Shuttle Bridge
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 be effective no earlier than late September 2024.
However, this data coincides with the General Bar Date for filing claims is set for August 9, 2024, at 5:00 p.m. ET. This deadline is important for creditors with claims against TFL that came up before January 21, 2024, or against TLL that arose before July 1, 2024.
Undelegating and Burning LUNA Tokens
Further, 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.
These actions reflect TFL’s efforts to restructure and address financial obligations during the bankruptcy proceedings, potentially impacting both the Terra Classic community and LUNA’s market dynamics.
