The CEO of Terraform Labs, the developer of the Terra blockchain, has invited the community to take over as the company prepares to cease operations.
According to CEO Chris Amani, the firm intends to sell its Terra ecosystem initiatives, which include Pulsar Finance, Station Wallet, and Enterprise DAO. This follows Terraform’s $4.47 billion settlement with the Securities and Exchange Commission over the UST algorithmic stablecoin, which fell significantly in 2022.
“TFL always intended to dissolve at some point, and that point is now,” Amani said on X, announcing the end of Terraform Labs. “We will be winding down operations completely.”
Amani indicated that the corporation intends to launch a community proposal that would result in the burning of all unvested Luna, Terraform’s native token. “Anything that remains vested in our wallets will be burned by TFL,” he confirmed, signaling the end of the company’s direct connection with the cryptocurrency.
He argued that the Terra and Terra Classic blockchains should remain under community control. “The community will need to take over ownership of the chain,” Amani stated, pushing for a community-led governance approach following the catastrophe.
In February 2023, the SEC sued Terraform and its co-founder, Do Kwon, for deceiving investors and selling unregistered securities.
Terraform settled with the SEC on Wednesday, agreeing to pay $3.58 billion in disgorgement, a $420 million civil penalty, and a prohibition on Kwon acting as an officer or director of any public business. Kwon must also pay approximately $204 million into a bankruptcy estate to compensate injured investors.
Amani, Terraform’s former COO, succeeded Kwon in July 2023, following the company’s Chapter 11 bankruptcy filing in Delaware in January.
