Chris Amani, CEO of Terraform Labs, announced that the company, developer of Terra (LUNA), plans to cease operations. In this way, the company will transfer control of the ecosystem to the community.
This decision comes after the US$4.47 billion settlement with the US Securities and Exchange Commission (SEC), related to the collapse of the algorithmic stablecoin UST in May 2022, as reported by CriptoFácil on Wednesday (12).
According to Amani, Terraform Labs always intended to dissolve at some point and that moment has arrived. The company plans to sell its projects in the Terra ecosystem, including Pulsar Finance, Station Wallet and Enterprise DAO. The executive communicated the decision to community members through a post on platform X (formerly Twitter). In the publication, Amani highlighted the need for the community to take control.
Community will take control of Terraform Labs
In the proposal, Amani outlined plans to burn all unacquired Luna tokens. Furthermore, she stated that she intends to destroy the remaining assets in Terraform’s wallets. This action aims to definitively end the company’s direct involvement with the native token.
Amani also emphasized that the Terra and Terra Classic blockchains could continue to operate under community management. He suggested implementing a community governance model, which could reshape the operation of blockchain projects after the crisis.
The SEC initially charged Terraform and its co-founder, Do Kwon, in February 2023 with misleading investors and violating federal securities laws. The recent settlement includes $3.58 billion in restitution and a $420 million civil penalty. Additionally, Kwon is prohibited from serving as an officer or director of any public company. He must also contribute around US$204 million to Terraform’s bankruptcy estate, aiming to compensate harmed investors.
Amani, who took over as CEO in July 2023, replacing Do Kwon, highlighted that the dissolution process is a critical part of the transition. He also mentioned that the company filed for Chapter 11 bankruptcy in a Delaware court in January.
This movement marks a new phase for the Terra ecosystem, with the community taking a central role in the governance and operation of blockchains.
Source: https://www.criptofacil.com/terraform-labs-sera-dissolvida-e-ceo-pede-que-comunidade-assuma-o-controle/
