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Terra will reopen Shuttle Bridge and destroy 150 million LUNA tokens based on bankruptcy court authorization

Terra will reopen Shuttle Bridge and destroy 150 million LUNA tokens based on bankruptcy court authorization

CointimeCointime2024/07/19 11:58
By:Cointime

Terra announced that the bankruptcy court order in the TFL Chapter 11 case authorized TFL to take the following actions: 1. Reopen ShuttleBridge to redeem encapsulated assets on Terra Classic; 2. Cancel and destroy 150 million LUNA obtained from Terra Community funding.According to the court order, TFL plans to transfer all assets held in the ShuttleBridge wallet to a new wallet and provide a new, simplified ShuttleBridge interface that supports users to redeem encapsulated assets from the Bridge wallet within 30 days. After that, TFL plans to permanently close Shuttle Bridge, and all remaining assets will be destroyed.The proposed Chapter 11 plan by TFL has not yet been approved by the bankruptcy court and is expected to take effect no earlier than late September 2024. Similarly, according to the bankruptcy court order and the settlement reached between TFL and the SEC, TFL will begin the process of revoking authorization for 125 million LUNA currently pledged by 49 validators recommended by Terra. Once LUNA is revoked, the 125 million LUNA used for delegation and the 2.5 million LUNA used for liquidity provision will be destroyed.

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