Terra will reopen the Shuttle Bridge and burn 150 million LUNA tokens, authorized by the bankruptcy court.

On July 19th, Terra announced that the bankruptcy court order in the TFL Chapter 11 case authorized TFL to: 1. Reopen the Shuttle Bridge to redeem encapsulated assets on Terra Classic; 2. Cancel delegations and burn 1.5 billion LUNA obtained from Terra community funding. According to the court order, TFL plans to transfer all assets held in the Shuttle Bridge Wallet to a new Wallet and provide a new, simplified Shuttle Bridge interface, supporting users to redeem wrapped assets from the Bridge Wallet within 30 days. Afterwards, TFL intends to permanently close the Shuttle Bridge, and all remaining assets will be destroyed. The proposed Chapter 11 plan by TFL has not yet been approved by the bankruptcy court and is expected to take effect no earlier than late September 2024. Similarly, in accordance with the bankruptcy court order and the settlement reached between TFL and the SEC, TFL will begin the process of revoking the authorization for the 125 million LUNA staked by the 49 validators currently recommended by Terra. Once the LUNA is unstaked, the 125 million LUNA used for staking and the 2.5 million LUNA used for Liquidity supply will be destroyed.