Terra Classic Update: Shuttle Bridge Reopening and LUNA Burn on the Horizon
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The Terra Classic (LUNC) community received important news regarding a recent bankruptcy court order impacting Terraform Labs (TFL) and LUNC. This article outlines the key takeaways and potential implications for LUNC holders.
Shuttle Bridge Reopens for Wrapped Asset Redemption
- Temporary Access: The court order authorizes TFL to reopen the Shuttle Bridge for a limited time. Users will have the opportunity to redeem their wrapped assets held on Terra Classic.
- Enhanced Security: TFL plans to transfer assets from the existing bridge wallets to new, more secure ones.
- Simplified Interface: A new user-friendly interface will facilitate the redemption process.
- Time-Bound Redemption: Users will have 30 days to redeem their assets after TFL’s Chapter 11 plan becomes effective (anticipated in late September 2024).
- Permanent Closure: Following the 30-day redemption window, the Shuttle Bridge will be permanently shut down and any remaining assets will be burned.
Read Also: Burning 6 Trillion LUNC: A Path Towards a Brighter Future?
Action Required: Terra Classic users with wrapped assets on the Shuttle Bridge should monitor further announcements regarding the redemption process and timelines.
LUNA Undelegation and Burn Authorized
- Community Grant LUNA: The court order allows TFL to undelegate and burn the 150 million LUNA received from the Terra Community Grant.
- Staked LUNA Burn: Additionally, TFL will undelegate and burn 125 million LUNA currently staked with validators, along with an additional 25 million LUNA allocated for liquidity provisioning.
- Compliance with SEC Settlement: This LUNA burn is part of a settlement agreement between TFL and the SEC.
Impact on LUNC Supply: The burning of these LUNA tokens is expected to reduce the overall circulating supply, which could potentially influence the price of LUNC.
No Immediate Action Needed: LUNC holders do not need to take any immediate action regarding the LUNA burn.
Read Also: LUNC Community Pool: Prioritizing L1 Work for a Stronger Foundation
Looking Ahead
The reopening of the Shuttle Bridge and the upcoming LUNA burn are significant developments for the LUNC ecosystem. While the long-term impact remains to be seen, these actions could potentially influence user activity, token supply, and ultimately, the price of LUNC. The Terra Classic community should stay informed about further announcements regarding the redemption process and any updates related to TFL’s Chapter 11 plan.
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