Terraform Labs Reopens Shuttle Bridge, Will Burn 150M LUNA Tokens as Part of Restructuring Plan

On Friday, Terraform Labs (TFL) informed its community about a recent bankruptcy court order authorizing the company to take certain steps in its restructuring plan, including reopening the Shuttle Bridge and burning millions of LUNA.

Terraform Labs (TFL) announced Friday that a recent bankruptcy court order authorizes the company to take certain steps in its restructuring plan, including reopening the Shuttle Bridge and burning millions of LUNA.

TFL filed for bankruptcy protection in the U.S. in January this year, almost two years after the company’s stablecoin, TerraUSD, collapsed, losing 99% of its value in just 48 hours. In the court filing, Terra said it would meet all monetary obligations to employees and vendors without requiring additional financing.

Shuttle Bridge Reopening and LUNA Burn

In an X (Twitter) post, Terraform Labs said it would reopen the Shuttle Bridge for the redemption of wrapped assets on Terra Classic as part of the court’s directive. Users will have a 30-day window to redeem their wrapped assets from the bridge after Terra’s bankruptcy plan becomes effective.

TFL will also undelegate and burn 150 million LUNA in compliance with the settlement it reached with the U.S. Securities and Exchange Commission (SEC). The tokens earmarked for destruction include 125 million LUNA staked by 49 validators and 25 million Luna meant for liquidity provisioning.

Per the post, “no action is required” from previous Shuttle Bridge users for now.

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