Terraform Labs to Reopen Shuttle Bridge, Burn Millions of LUNA Tokens

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Terraform Labs to Reopen Shuttle Bridge.

Terraform Labs has announced sweeping changes following a recent bankruptcy court order in Terraform Labs’ (TFL) Chapter 11 case. The court’s decision has given TFL the green light to make significant moves. The company will reopen its Shuttle Bridge and destroy a large number of LUNA tokens. These actions are key parts of TFL’s plan to restructure and recover from its financial troubles.

The reopening of the Shuttle Bridge will let users access assets tied up in the Terra Classic system. Meanwhile, burning LUNA tokens aims to boost the cryptocurrency’s value. These steps mark a turning point for Terra as it works to rebuild trust and stability in its ecosystem.

Shuttle Bridge Reopens, Offering Limited-Time Asset Redemption

TFL will relaunch the Shuttle Bridge, a crucial infrastructure connecting Terra to other blockchains. This move will enable users to reclaim their sealed assets on Terra Classic, marking a pivotal moment for many investors.

Terraform Labs LUNA TERRA — Tweet about Terraform Labs opening the shuttle bridge. Source: Terra Money on X

The Shuttle Bridge reopening involves transferring assets to a new wallet and introducing a simplified redemption interface. Users will have a 30-day window to redeem their wrapped assets, after which the TFL will close the bridge permanently.

TFL Will Burn 150M LUNA Token

With the aim of stabilizing LUNA’s value and restoring investor confidence, TFL plans to destroy millions of tokens. The court has authorized the cancellation and destruction of 150 million LUNA tokens from Terra community funding. Additionally, 125 million LUNA tokens currently staked by 49 validators will be deactivated and destroyed, along with 2.5 million LUNA used for liquidity provision.

This substantial reduction in circulating supply aims to boost LUNA’s market position and support Terra’s broader revival strategy.

While these developments signal a positive turn for Terra, the journey is far from over. TFL’s proposed Chapter 11 plan, which encompasses these measures, awaits full approval from the bankruptcy court. The expected implementation date is late September 2024.

Furthermore, TFL’s recent settlement with the U.S. Securities and Exchange Commission (SEC) shows the company’s commitment to regulatory compliance and financial stability.

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