Terraform Labs Sets October 30th Deadline for Terra Classic Users

Terraform Labs (TFL), the foundational entity behind the once-prominent ecosystem, has issued a major warning 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 caused a market implosion last year that wiped out approximately $40 billion in value. Currently embroiled in Chapter 11 bankruptcy proceedings, the company continues to manage fallout and transition plans, including major system updates and asset management protocols.

Terra Classic users: mark this date in your calendar

Today, August 28th, Terraform Labs announced the reopening of the Shuttle Bridge interface. This platform is crucial for users holding 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 Chapter 11 plan effective date, which is expected to be on or around October 30, 2024. Opening the bridge will give you the ability 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 allows for the transfer of assets from these blockchains to Terra Classic, but also provides users with a limited time window to redeem their wrapped assets before the company moves forward with bankruptcy resolution. After the bridge is closed, all crypto assets remaining in the contracts will be burned, thus marking the last opportunity for users before the bridge is permanently closed. “Users of the Terra Shuttle bridge on Terra Classic are encouraged to use this opportunity to redeem their Terra Classic assets,” the announcement read.

Yesterday, the company made another pivotal announcement via X. The company unveiled what it intends to be the final upgrade to the blockchain, known as Proposal 4818. This is part of the company’s broader strategy to wind down its direct involvement in active development within the ecosystem as it undergoes its ongoing legal and financial restructuring.

The statement read: “As TFL begins to wind down its operations, Proposition 4818 will be the last chain upgrade we implement. Pursuant to TFL’s settlement with the SEC and the implementation of its proposed Chapter 11 plan, TFL will no longer be able to support future chain upgrades.”

The announcement marks a crucial transition from Terraform Labs-led development to community-driven efforts to maintain and potentially evolve the blockchain infrastructure. “Looking ahead, we are looking to community-driven initiatives like the Phoenix Directive (@phoenix_dir) to take over maintenance and operational responsibilities for the blockchain,” TFL wrote via X.

At the time of going to press, LUNC was trading at $0.00008526.

Main image of ZipMEX, chart from TradingView.com