Terra: 150 Million LUNAs to be Unpledged and Destroyed Under Court Authorization, Permanent Shutdown of Shuttle Bridge Proposed After Users Redeem Encapsulated Assets

July 19 - Terra announced that in TFL's bankruptcy reorganization case, the court authorized TFL to take the following actions: 1) reopen Shuttle Bridge for the redemption of packaged assets on Terra Classic; and 2) unpledge and destroy $150 million in LUNA from Terra's community grants.Pursuant to the court's order, TFL plans to transfer all assets in the Shuttle Bridge wallet to a new, more secure wallet and to provide a new, simplified Shuttle Bridge interface that will allow users to redeem wrapped assets within 30 days of the effective date of TFL's Chapter 11 program. Thereafter, TFL intends to permanently close Shuttle Bridge and the remaining assets will be destroyed.TFL's Chapter 11 bankruptcy reorganization plan, which has not yet been approved by the Court, is expected to become effective in late September 2024 at the earliest.

In the meantime, pursuant to the Court's order and in compliance with TFL's settlement agreement with the SEC, TFL will begin the process of releasing the 125 million LUNAs currently held by 49 validators recommended by Terra's proxy committee. A list of these validators can be found on the Terra Community Forum. Once the LUNAs are de-pledged, the 125 million LUNAs used for delegation and the 25 million LUNAs used for liquidity provision will be destroyed. No action is required at this time and TFL will announce in due course the steps that can be taken by pre-Shuttle bridge users.