Terraform Labs Sets Crucial October 30 Deadline For Terra Classic Users

3 months ago 24

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Terraform Labs (TFL), the foundational entity behind the once-prominent ecosystem, has issued a significant alert for users of its Terra Classic platform. This comes in the wake of the historic collapse of its algorithmic stablecoin UST and its companion cryptocurrency LUNA, which precipitated a market implosion wiping out around $40 billion in value last year. Currently embroiled in chapter 11 bankruptcy proceedings, the company continues to manage fallout and transition plans, including significant system updates and asset management protocols.

Terra Classic Users: Mark This Date In Your Calendars

Today, August 28, Terraform Labs announced the reopening of the Shuttle Bridge interface. This platform is crucial for users who hold wrapped versions of LUNC (Luna Classic) and USTC (TerraUSD Classic), facilitating their transfer between the blockchain and other prominent blockchains such as Ethereum, BNB Chain (BSC), and Harmony.

The announcement detailed the operational window for this service, stating: “The new Shuttle Bridge interface to redeem wrapped assets is now open. […] The bridge will remain open from now until 30 days after the effective date of the chapter 11 plan, which is estimated to be on or around 30 October 2024. Opening the bridge gives you the opportunity to redeem your assets and use them as you wish. Please ensure you redeem your assets as soon as possible to avoid any issues.”

This interface not only enables the retrieval of assets from these blockchains to Terra Classic but also marks a limited-time opportunity for users to redeem their wrapped assets before the company progresses further in its bankruptcy resolution. After the bridge closes, all crypto assets still in the contracts will be burned. Thus, this the last opportunity for users before the bridge will be permanently shut down. “Users of the Terra Shuttle bridge on Terra Classic are recommended to use this opportunity to redeem their Terra Classic assets,” the announced.

Just yesterday, the company made another crucial announcement via X. The company unveiled what it intends to be the final upgrade to the blockchain, known as Proposal 4818. This comes as part of the company’s broader strategy to conclude its direct involvement in active development within the ecosystem due to its ongoing legal and financial restructuring.

The statement elaborated: “As TFL begins winding down its operations, Proposal 4818 will be the final chain upgrade that we implement. 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.”

The announcement marks a pivotal transition from Terraform Labs-led development to community-driven efforts to sustain and possibly evolve the blockchain infrastructure. “Going forward, we look to community-driven initiatives such as the Phoenix Directive (@phoenix_dir) to take over maintenance and operational responsibilities for the blockchain,” TFL wrote via X.

At press time, LUNC traded at $0.00008526.