275 BILLION LUNC COULD BURN AS TFL MAKES FINAL WLUNA UPDATE

Summary

In this update, Jay discusses a significant development from TFI's bankruptcy court, authorizing the reopening of the Terra Classic Shuttle Bridge for redemption of wrapped assets and the burning of 150 million Luna. The move is expected to reduce the total supply of coins, which is bullish for the blockchain. Jay emphasizes the importance of the burn narrative and the potential for a substantial amount of coins to be removed, including a quarter of a trillion LC and 175 million USC. He also highlights the implications for the Luna ecosystem and the upcoming timeline leading to September 2024.

Takeaways

• 🚀 The Terraform Labs (TFL) has provided a substantial update on the Terra Classic (WRA) situation through their Twitter account, addressing long-standing questions about the wrapped assets and the future of the Terra Shuttle Bridge.
• 🔍 TFL's bankruptcy court order has authorized the reopening of the Shuttle Bridge for redemption of wrapped assets on Terra Classic and the burning of 150 million Luna from the Terra Community Grant.
• 💡 The update emphasizes a burn narrative, suggesting that a significant amount of coins will be burned, which aligns with the speaker's previous discussions about the potential for a substantial coin burn.
• 🔥 The Terra Bridge holds a substantial amount of LUNA and UST, indicating that a significant portion of these coins could be burned, which is considered bullish for the blockchain.
• 📈 The speaker anticipates that many users will not move their wrapped assets due to high gas fees, leading to a likely scenario where these assets will be left in the bridge to be burned.
• 📊 TFL intends to move all assets from the Shuttle Bridge wallets to new, more secure wallets and provide a simplified interface for asset redemption until 30 days after the TFL Chapter 11 plan goes effective.
• ⏳ The TFL Chapter 11 plan is not yet approved and is expected to go effective no earlier than late September 2024, setting a timeline for the reopening of the bridge and subsequent asset actions.
• 📊 The top holder of Luna Classic is the Terra Bridge itself, with over 275 billion LC, and it is also a top holder of UST, with 178 million tokens, indicating a large potential for coin burn.
• 🔄 The update suggests a power shift in the Luna ecosystem due to undelegations and the opening of new active set slots, which could lead to increased competition among validators.
• 🛡️ TFL's decision to move assets to new wallets is seen as a safety precaution to prevent potential issues with access and security, which the speaker supports.
• 📉 Despite the challenges faced by those with wrapped Luna and the uncertainty around the Shuttle Bridge, the overall outcome is viewed as bullish due to the potential for a large-scale coin burn.

Q & A

What is the main update discussed in the video script?

The main update discussed is from TFL regarding the Terra Classic (Terraform Labs) and the reopening of the shuttle bridge for redemption of wrapped assets, as well as the plan to burn 150 million Luna from the Terra Community Grant.

What is the significance of the burn narrative mentioned in the script?

The burn narrative is significant because it suggests that a substantial amount of coins will be removed from circulation, potentially increasing the value of the remaining coins and benefiting the blockchain ecosystem.

What does the script imply about the future of the Terra Bridge and its assets?

The script implies that the Terra Bridge will be reopened for a period to allow users to redeem wrapped assets, and after 30 days, it will be permanently shut down with any remaining assets being burned.

Why might some users choose not to redeem their wrapped assets?

Some users might choose not to redeem their wrapped assets because the gas fees required to bring them back on-chain could be higher than the value of the coins themselves.

What is the current stance of Binance on the burn tax according to the script?

According to the script, Binance does not object to the burn tax as they have a whitelist and their big movements are not affected by the burn tax. They have previously supported a 1.2% burn tax.

What is the role of the top holders of Luna Classic and UST in the script's narrative?

The top holders, particularly the Terra Bridge, hold a significant amount of Luna Classic and UST, which could be burned, affecting the total supply and potentially the value of the coins.

How does the script suggest the burn of assets will impact the Luna ecosystem?

The script suggests that the burn of assets will be very bullish for the Luna ecosystem, as it will reduce the total supply of coins, potentially increasing their value.

What is the timeline given for the reopening of the shuttle bridge and the subsequent burn?

The timeline given is that the shuttle bridge will reopen and allow redemption of wrapped assets until 30 days after TFL's Chapter 11 plan goes effective, which is anticipated to be no earlier than late September 2024.

What is the script's view on the potential for a power shift in the Luna blockchain due to undelegated Luna?

The script suggests that the undelegated Luna could lead to a power shift, opening up additional active set slots on the Luna blockchain and causing competition among validators.

What advice does the script give to those who might be affected by the wrapped Luna and shuttle bridge situation?

The script advises those affected to stay informed, be prepared for high gas fees if they decide to redeem their wrapped assets, and to understand that the process will be on a timeline.

Outlines

00:00

🚀 Terraform Labs Update on Wrapped Assets and Burn Narrative

Jay, the host, introduces a significant update from Terraform Labs (TFL) regarding the Terra classic Twitter account. The update addresses the community's concerns about the future of wrapped assets and the Terra Shuttle Bridge. It's confirmed that TFL will reopen the bridge for redemption of wrapped assets, undelegate and burn 150 million Luna from the Terra Community Grant. The update also suggests that a substantial amount of coins will be burned, aligning with Jay's recent discussions on the 'burn narrative'. The burn tax is clarified as not being a concern for Binance, as they have a whitelist and are not affected by the tax. The wallet has been performing burns, including 3.5 million and 1.5 million LC, indicating a continued burn of commissions and rewards. The update is expected to push the blockchain towards a bullish trend by September 2024, with the reopening of the bridge and the potential for a large burn of remaining assets.

05:02

🌐 Top Holders and the Impending Burn of Luna Classic and UST

The second paragraph delves into the top holders of Luna Classic (LC) and UST within the Terra ecosystem, with the Terra Bridge holding over 275 billion LC and ranking seventh for UST with 178 million tokens. The potential for a substantial burn of these assets is highlighted, especially considering the high gas fees that may deter users from redeeming their wrapped assets. The update from TFL includes a court order authorizing the reopening of the Shuttle Bridge for asset redemption and the eventual burn of any unmoved assets. The timeline extends to September 2024, suggesting a power shift in the Luna blockchain due to undelegated funds and the opening of additional active set slots. The narrative concludes with a bullish outlook for the blockchain, emphasizing the safety precautions taken by TFL in moving assets to new wallets and the positive implications of the expected coin burn for the ecosystem.

Keywords

💡TFL

TFL, or Terraform Labs, is a company that develops blockchain protocols and has been central to the narrative of the video. It is responsible for the Terra ecosystem and is currently undergoing a Chapter 11 bankruptcy case. The video discusses updates from TFL concerning the Terra Classic network and the future of wrapped assets, which are a significant part of the video's theme.

💡Shuttle Bridge

The Shuttle Bridge is a mechanism within the Terra ecosystem that allows for the transfer of assets between different blockchains. In the video, the reopening of the Shuttle Bridge for redemption of wrapped assets is a key update, indicating a pivotal moment for the Terra Classic community and the potential for a significant burn of assets.

💡Wrapped Assets

Wrapped assets refer to tokens that represent assets on a different blockchain. In the context of the video, these are assets on Terra Classic that have been 'wrapped' to be used on other networks like Ethereum. The script discusses the future of these assets, their redemption, and the implications for the Terra ecosystem.

💡Burn Narrative

The burn narrative in the video refers to the process where a significant amount of coins will be permanently removed from circulation, typically through a 'burning' process. This is seen as bullish for the blockchain as it reduces the supply of coins, potentially increasing their value. The video suggests that this will be a major theme moving forward.

💡Burn Tax

The burn tax is a mechanism where a portion of transactions is 'burned' or removed from circulation. In the video, it is mentioned that Binance supports a 1.2% burn tax, indicating a level of acceptance and integration of this process within the ecosystem. The script suggests that increasing the burn tax could be beneficial.

💡Luna Classic (LC)

Luna Classic (LC) is a cryptocurrency associated with the Terra Classic network. The video highlights that the Terra Bridge holds a substantial amount of LC, which could be subject to burning. This is a key point in the discussion about the potential reduction in the total supply of LC.

💡USC

USC, or US Coin, is another cryptocurrency within the Terra ecosystem. The script mentions that the Terra Bridge also holds a significant amount of USC, which could also be subject to burning. This is part of the broader narrative about asset reduction and the potential impact on the ecosystem.

💡Bankruptcy Court Order

The bankruptcy court order mentioned in the video is a legal directive authorizing TFL to take specific actions related to the Terra Classic network, including the reopening of the Shuttle Bridge and the burning of certain assets. This order is a critical part of the video's discussion about the future of the Terra ecosystem.

💡Chapter 11

Chapter 11 refers to a chapter in U.S. bankruptcy law that allows a company to reorganize its debts while continuing to operate. In the video, TFL's Chapter 11 case is discussed, with the implication that the company's actions, including asset burning and the reopening of the Shuttle Bridge, are part of this reorganization process.

💡Delegation and Undelegation

Delegation in the context of the video refers to the process where Luna holders 'stake' or delegate their tokens to validators to support the network's operation. Undelegation is the reverse process. The script suggests that a significant amount of Luna is currently delegated, and a shift towards undelegation could lead to a power shift within the Luna blockchain.

💡Power Shift

A power shift in the video refers to a change in the distribution of influence or control within the Luna blockchain due to changes in delegation. The script suggests that undelegation of a large amount of Luna could lead to new validators vying for these tokens, potentially altering the balance of power within the ecosystem.

Highlights

TFL's Terror Classic Twitter account has released a substantial update that many have been waiting for, addressing questions about the future of the terror shuttle bridge and wrapped assets.

The update aligns with the burn narrative, suggesting a significant amount of coins will be burned, including those held in the Terraform trial exhibit 301 file.

The terror Bridge itself holds a substantial amount of LC and USC, indicating a significant number of coins will be torched in the coming months.

The blockchain community is encouraged to push harder on the burn narrative, as it will create a wave that needs to be ridden.

Binance is not expected to be upset by a potential increase in the burn tax, as they have supported it previously and are not affected by it due to their whitelist and safe handling of big movements.

The wallet has been performing more burns, including 3.5 million and a further 1.5 million LC, demonstrating a commitment to burning its commission and rewards.

On the 30th of this month, it is assumed that all funds will burn, further supporting the burn narrative.

A recent bankruptcy court order authorizes TFL to reopen the shuttle bridge for redemption of wrapped assets on Tera Classic, undelegate, and burn the 150 million Luna from the terror Community Grant.

The new court order does not affect the blockchain directly, focusing on the reopening of the shuttle bridge for redemption of wrapped assets.

TFL intends to move all assets held in the shuttle Bridge wallets to new and more secure wallets and provide a new simplified shuttle Bridge interface.

The new interface will allow users to redeem wrapped assets from the bridge wallets until 30 days after TFL's chapter 11 plan goes effective.

TFL plans to permanently shut down the shuttle bridge after the 30-day period, and any remaining assets will be burned.

TFL's proposed chapter 11 plan is not yet approved and is not anticipated to go effective until late September 2024 at the earliest.

The top holder for Luna Classic is the Terra Bridge itself, holding over a quarter of a trillion coins, indicating a potential for substantial coin burn.

The bridge also deals with USC, holding 178 million USC, which could also be burned, further supporting the burn narrative.

The Wormhole token Bridge might also be affected, as it is interconnected with the shuttle interface.

The timeline moving towards September 2024 indicates significant movement as the bridge reopens, and coins that don't move will be burned.

The update is seen as bullish for the blockchain, as it will likely result in a substantial reduction in the total supply of coins.

The ultimate end result is expected to be bullish regardless, as whatever is left in the shuttle will get burned, potentially removing a quarter of a trillion coins from the total supply.

The update is not a surprise, as it was previously hinted at in court documents, and it is seen as a necessary step to solve the wrapped situation as ordered by the courts.

Moving everything to new wallets is seen as a prudent safety precaution, removing potential issues in the future.

Transcripts

hey guys Jay here and welcome back to

the channel so don't forget to like

subscribe comment hit the notifications

Bell to stay informed so we've got a

pretty substantial update to go through

from tfl and this is coming through

their Terror classic Twitter account and

for a lot of us this is the update we

have been waiting for for quite some

time because there's just been no

answers on the terror shuttle bridge

what's going to happen to the wrapped

assets what happen WRA Luna hamster

wrapped USC so these have all been very

vital questions and finally we have got

those answers we've got a timeline to go

through I mean we have got everything we

need moving forward and once again this

all pushes towards the burn narrative

and what I've been speaking about

recently especially regarding this

wallet is the idea that a significant

amount of coins are simply just going to

be burned and we're not even talking

about what is held in the terraform

trial exhibit 301 file where we've got

all of those different wallets with all

of those different funds that we've gone

through and we've tallied up in previous

videos here right the terror Bridge

itself has a substantial amount of LC

and a substantial amount of

USC so we're going to see a significant

amount of coins torched over the next

few months and what we need to do is as

a blockchain is push harder on that

narrative in effect there is a wave

being created and we need to get the

surf boards out we need to ride that

wave so something I've been seeing a lot

of people saying oh well it would upset

binance if you went back up to 1.2% and

I have to completely disagree there

binance do not care what the burn tax is

for the simple fact that the way that

they burn is done in a very effective

and efficient and safe manner

as to which they have a white list their

big movements are not affected by that

burn tax binance has supported the 1.2

burn tax previously and they went down

because we decided to go back down if

they we decide to go back up they would

support that moving forward so there's

no difference to what they've already

been through previously now of all of

this being said this wallet is doing

more Burns it's burned 3.5 million here

and then a further 1.5 million LC here

and alth those although these are very

small they're very significant because

this shows us once again it's burning

its commission it's burning its rewards

everything it's got it seems to be

burning so on the 30th of this month I

would once again then assume that all of

these funds are simply going to burn so

let's move over to the official update

itself and I'll go through it from the

top to the bottom so we'd like to inform

you about a recent bankruptcy court

order in tfo's chapter 11 case

authorizing tfl to do the following

reopen the shuttle bridge for Redemption

of wrapped assets on Tera classic

undelegated and burn the 150 million

Luna from the terror Community Grant so

part two of that doesn't actually affect

us it's nothing to do with our

blockchain those coins are all part to

do with the main net so this leaves us

in a situation where we're simply

looking at the reopening of the shuttle

bridge for Redemption of wrapped assets

so what I would say to everybody is it's

the ethereum side of thing so gas fees

are different currently if I want to

bring my wrapped assets back on chain it

would cost me more in gas fees than the

coins are worth themselves so therefore

I won't be moving my wrapped assets

they'll be getting left there but this

is really good and once again plays into

the burn narrative because under the New

cour Order TFO intends to move all

assets held in the shuttle Bridge

wallets to new and more secure wallets

and make available a new simplified

shuttle Bridge

interface the new interface simplified

shuttle bridge will allow users to

redeem wrapped assets from the bridge

wallets until 30 days after tfl chapter

11 plan goes effective after that time

tfl intends to permanently shut down the

shuttle bridge and any remaining assets

will be burned tfo's proposed chapter 11

plan has not been yet approved by the

bankruptcy court and is not anticipated

to go effective until late September

2024 at the earliest so this is what

really really stands out for me because

like I was saying just a moment ago a

lot of people's assets are going to cost

them more in gas fees to get them back

on chain then it would be then to just

leave them they're better off just

leaving them in this situation so we're

probably going to see a significant

amount of these assets simply not move

so what we're going to do now is we're

going to go over to Lun Dash and we're

going to take a look at the top holders

because the top holder for Luna classic

in our whole

ecosystem on chain is actually the Terra

Bridge itself with just just over a

quarter of a trillion coins being 275

billion LC this is a significant amount

of

coins so we could see a very substantial

portion of these coins burned and then

once again like I was saying the bridge

itself doesn't just deal with Luna

classic it deals with USC as well it's

ranked seventh for top holders of USC

and it currently holds

178 million USC so once again this is a

significant amount that could be burned

and I think we could also see the

Wormhole token Bridge possibly be

rounded down into this because it is

interconnected into the whole shuttle

interface so this leaves us in a

situation as a blockchain with a

timeline moving towards September 2024

we're going to see a significant amount

of movement as they reopen the bridge

and those coins that don't move will be

burned this is very very bullish for our

blockchain very bullish on top of the

Luna ecosystem itself seeing a decent

amount of UND delegations being around I

think it's 15 million Luna that is

delegated out across multiple validators

on the Luna blockchain so you're going

to see all of those coins become

undelegated which is probably going to

set a power shift into motion and what I

mean by power shift is it's going to

open up around five extra active set

slots on the Luna blockchain and people

are going to be fighting to get those

coins so there's probably going to be

people that are going to be wanting to

figure out some kind of power play

around this and once again it puts that

blockchain in a position where

everybody's pushing and pulling instead

of everybody just pushing in the same

direction and that really is what makes

the difference when it comes down to

this stuff so this update wasn't a

surprise to me because I had been

speaking previously about what was said

in the court documents the idea that

they would have to make the wrapped

situation obsolete they would have to

solve it in some way shape or form as

ordered by the courts and as directed by

that final judgment now then moving

everything to new wallets to me doesn't

seem strange and I know a lot of people

probably think oh that's actually quite

weird Jay but I would say they can't

really trust any of the people that that

they had hired at this point anyone who

has access to any of that could in fact

go through the back door and take all of

those funds that is a situation where I

would say I totally agree with what

they're doing because they're taking

these pretty pretty damn certain safety

precautions and they're removing these

these problematic areas which could lead

to issues in the future so once again

this is really really bullish for our

blockchain I couldn't think of a better

way for this to all end up

because you're going to see those coins

burn I really do think not a lot of

people will move their coins and by the

time we reach September we're probably

going to be in the heat of the ball run

meaning that gas fees are probably going

to be even higher at that point so it's

going to be interesting to see how this

all works out but what I'm getting at

here and I guess what the final kind of

like bullet points of this video is no

matter what happens it's going to be

bullish regardless because the ultimate

end result is is whatever is left in the

shuttle is going to get burned so the

possibility of seeing a quarter of a

trillion coins removed from the total

Supply is pretty high at this point and

then the same with USC around 175

million could burn this is great I don't

need to ask you what you all think of

this because I have no doubt you're all

very happy about this there's a lot of

people who are affected by the wrapped

Luna side of things and the whole

shuttle Bridge not being brought back to

its original state but do remember that

this is all going to be on a timeline so

if you are aiming to do this you need to

be prepared and you need to be prepared

for the fact that gas fees are probably

going to be extraordinarily high so set

your standards I would guess in this

situation what you're expecting out of

it quite low because there's still an

opportunity for you if you were involved

in the crash yourself

that you can go through this bankruptcy

estate to be get some kind of

Retribution some kind of payback for

your loss I'll leave links to all of

this in the description for all of you

so you can go through it you can have a

look and you can sort of get yourself

totally up to date with it it's always

good to keep yourself up to date but

aside that don't forget to like

subscribe comment hit the notifications

Bell to stay informed and just stay safe

stay humble stay aware and as always

I'll catch you in the next one on

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