On June 13, 2024, Chris Amani, CEO of Terraform Labs (TFL), announced the dissolution of the company, marking a significant shift in the blockchain landscape.
Known for the development of LUNA and UST, TFL has faced numerous challenges, including a lawsuit with the US SEC.
Following a settlement involving a hefty payment, Amani outlined the future plans for TFL, including the burning of uninvested LUNA and transitioning the Terra blockchain to community leadership.
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Terraform Labs: CEO Reports Future Plans
On June 13, 2024, Chris Amani, CEO of Terraform Labs (TFL), known for developing LUNA and UST (now LUNC and USTC) which collapsed in May 2022, announced plans to dissolve TFL and transfer ownership of the blockchain to the community.
Terraform Labs (TFL) was a cryptocurrency company that operated the algorithmic stablecoin “TerraUSD (UST)” using LUNA. After the price crash of LUNA and UST, they were rebranded as “LUNC and USTC,” and a new Terra (LUNA) was launched.
TFL had faced litigation issues with the US SEC, but on June 13, 2024, it was reported that “TFL and former CEO Do Kwon agreed to pay $4.47 billion to the SEC in disgorgement, prejudgment interest, and civil penalties.”
This announcement is to report on the settlement and to explain “the future plans of TFL.”
Complete Termination of Terraform Labs’ Business Operations
Chris Amani stated in the post, “TFL has always considered dissolving at some point, and now is exactly the right time,” explaining that the defeat in the lawsuit is the catalyst for the complete termination of TFL’s business operations.
It was suggested that if Terraform Labs (TFL) had won the lawsuit against the US SEC, they could have accelerated their business, but losing the lawsuit has made it impossible to continue operations.
Disposal of LUNA and Transition of Chain Leadership
A community proposal to “burn all uninvested LUNA held by Terraform Labs” will be posted, meaning everything left in TFL’s wallets will be burned.
Regarding the Terra blockchain, it is explained that “the community needs to take over the leadership of the chain,” with information about the teams and developers taking over expected to be available on the forum soon.
However, it is noted that the various products developed by TFL will continue to operate during the transition period, and the sale process of “Pulsar Finance, Station Wallet, Enterprise Protocol” will proceed.
Decline in LUNA, LUNC, and USTC Prices
LUNC and USTC had been transitioning to community-led management since the emergence of the new LUNA, but after this report, the prices of LUNA, LUNC, and UST all dropped by around 5%.
Efforts such as burn campaigns aimed at price recovery were underway for LUNC and USTC, and there were opinions hoping for price increases in a bullish market, but at the time of writing, a long-term downward trend seems to be continuing.
The “Terra” and “Terra Classic” blockchains are still operating as of writing, but if this report leads to delisting from cryptocurrency exchanges or a decrease in the number of validators supporting the network, it could affect the price and the network itself.
Therefore, if you hold LUNA, LUNC, USTC, or similar assets, it is important to keep an eye on future news and updates.
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