Terraform Labs to reopen Shuttle Bridge, destroy LUNA tokens!!

#BinanceTurns7 #SOFR_Spike #US_Job_Market_Slowdown #BinanceTournament #EarnFreeCrypto2024 Terra has announced significant developments following a bankruptcy court order in Terraform Labs’ (TFL) Chapter 11 case. The court has authorized TFL to take crucial steps, including reopening the Shuttle Bridge and destroying a substantial amount 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. TFL plans to transfer all assets held in the Shuttle Bridge wallet to a new wallet and introduce a simplified interface to facilitate the redemption process.

According to Terra, users will have a 30-day window to redeem their wrapped assets from the Bridge wallet. After this period, TFL intends to permanently close the Shuttle Bridge, and any remaining assets in the wallet will be destroyed.

the court order has authorized TFL to cancel the distribution and destroy 150 million LUNA tokens obtained from Terra community funding. This destruction is part of a broader strategy to stabilize the value of LUNA and restore confidence among the community and investors.

Related: Terraform Labs to end operations, Terra community will take over

Additionally, TFL will begin the process of deactivating the 125 million LUNA currently staked by 49 validators recommended by Terra. Once deactivated, these 125 million LUNA tokens, along with 2.5 million LUNA used for liquidity provision, will be destroyed.

TFL’s proposed Chapter 11 plan, which includes these measures, has not yet received 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 space.