- Terraform Labs will debut the final upgrade to the Terra ecosystem soon.
- The company’s announcement comes amid a $4.5 billion settlement with the SEC.
- After the upgrade, community-driven initiatives will take over the network.
Terraform Labs, the company behind the Terra ecosystem’s rollercoaster ride and the UST stablecoin’s collapse, has revealed the final upgrade to its blockchain network in the wake of the $4.5 billion settlement with the U.S. Securities and Exchange Commission (SEC).
Proposal 4818 will be the last chain upgrade on the Terra network, after which community-led initiatives will take the reins.
In an X post, Terraform Labs confirmed that as part of carrying out its proposed Chapter 11 plan, it will finish the integration of Proposal 4818, and then hand over control of the blockchain network to community-driven projects like Phoenix Directive.
The SEC and Terraform Labs settled earlier this year with the blockchain firm agreeing to pay a massive $4.5 billion to the regulator. This followed a jury finding the company responsible for the collapse of the Terra ecosystem, which wiped out around $40 billion from the crypto market, leaving many investors with significant losses.
“Pursuant to TFL’s settlement with the SEC and implementation of its proposed Chapter 11 plan, TFL will no longer have the ability to support future chain upgrades.”
Some investors responded to the announcement by asking Terraform Labs to burn the supply of LUNC and USTC tokens to give the Terra ecosystem a fresh start , offering investors new opportunities and boosting activity on the blockchain network.
It is important to note that on September 19th, a critical meeting of Terraform Labs will take place which will determine the company’s fate and the liquidation of its assets. Importantly, Chapter 11 hasn’t been approved yet and is expected to get the go-ahead in September.
Following this announcement from Terraform Labs, the tokens associated with the Terra ecosystem, including LUNC, LUNA, and USTC all trended downwards. According to CoinMarketCap data, LUNC dropped 7.42% and currently trades at $0.00008383 while LUNA and USTC dipped 7.90% and 10.61% in the past 24 hours, respectively, trading at $0.3712 and $0.01738, respectively.
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