Terraform Labs will reopen the Shuttle Bridge to allow limited asset redemption for 30 days. The company plans to destroy 150 million LUNA tokens in an effort to stabilize the cryptocurrency’s value. Terra’s restructuring plan is awaiting full approval from the bankruptcy court.
Following a recent bankruptcy court order, Terraform Labs has announced significant changes in its Chapter 11 case. The court’s decision has given the company the go-ahead to reopen the Shuttle Bridge and destroy a large number of LUNA tokens as part of its plan to restructure and recover from financial difficulties.
The reopening of the Shuttle Bridge will allow users to access assets tied up in the Terra Classic system, while the burning of LUNA tokens aims to boost the cryptocurrency’s value, signalling a turning point for Terra as it works to rebuild trust and stability in its ecosystem.
The relaunch of the Shuttle Bridge will enable users to reclaim their sealed assets on Terra Classic within a 30-day window before the bridge is permanently closed. Additionally, TFL will deactivate and destroy 125 million LUNA tokens currently staked by 49 validators, along with 2.5 million LUNA used for liquidity provision in an effort to support Terra’s broader revival strategy.
Despite these positive developments, TFL’s proposed Chapter 11 plan, which includes these measures, is awaiting full approval from the bankruptcy court, with an expected implementation date in late September 2024. Furthermore, the company’s recent settlement with the U.S. Securities and Exchange Commission (SEC) demonstrates its commitment to regulatory compliance and financial stability.