275 BILLION LUNC COULD BURN AS TFL MAKES FINAL WLUNA UPDATE

HC Crypto
19 Jul 202410:08

Summary

TLDRIn 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

  • ๐Ÿš€ 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.
  • ๐Ÿ” 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.
  • ๐Ÿ’ก 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.
  • ๐Ÿ”ฅ 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.
  • ๐Ÿ“ˆ 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.
  • ๐Ÿ“Š 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.
  • โณ 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.
  • ๐Ÿ“Š 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.
  • ๐Ÿ”„ 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.
  • ๐Ÿ›ก๏ธ 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.
  • ๐Ÿ“‰ 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

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Mindmap

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Keywords

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Highlights

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Transcripts

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Related Tags
Terra ClassicShuttle BridgeAsset RedemptionToken BurnBankruptcy CourtWrapped AssetsBlockchain UpdateBurn NarrativeCryptocurrency NewsLuna ClassicUSD Coin