TechFlow reports that on July 19, Terra officially announced on social media that the bankruptcy court has authorized TFL to reopen the Shuttle Bridge to redeem wrapped assets on Terra Classic and to undelegate and burn 150 million LUNA tokens obtained from the Terra community pool. According to the court order, TFL plans to transfer all assets from the Shuttle Bridge wallet to a new wallet and provide a simplified interface allowing users to redeem their wrapped assets within 30 days, after which the Shuttle Bridge will be permanently shut down and any remaining assets destroyed.
The proposed Chapter 11 plan by TFL is expected to take effect as early as late September 2024. Additionally, in accordance with the bankruptcy court order and the settlement reached between TFL and the SEC, TFL will begin the undelegation process for 125 million LUNA currently staked by 49 validators selected by Terra. The list of these validators has already been published. Once the LUNA tokens are undelegated, both the 125 million LUNA used for delegation and the 25 million LUNA used for liquidity provision will be burned.
