Terraform Labs (TFL) announced the winding down of its operations as part of its settlement with the US SEC. The company will implement Proposal 4818 as its final network upgrade.
Terraform Labs Shutdown
A little over two years after the collapse of LUNA, UST, and the entire Terra ecosystem, the company behind the ecosystem is finally shutting down. TFL announced on X that it’s winding down its operations in line with its settlement with the SEC. The company paid $4.47 billion, with $3.58 billion being disgorgement of illegal profits.
Final Network Upgrade Proposal 4818
Proposal 4818 will be the last chain update implemented by TFL before surrendering control of the network to the community. Proposal 4818 aims to upgrade Terra's mainnet to version 2.12.4. The changes include updating the validator minimum commission rate to 5%, burning all LUNA tokens owned by TFL, and removing illegally minted assets from the IBC hack. The blacklist function, which was introduced to prevent the IBC exploiter from withdrawing illegally minted assets, will also be removed. As of the time of writing, the proposal has garnered 60.1% of the votes with a minimum voting quorum of 30%.
Community's Role in Terra's Future
Going forward, the community will take over maintenance and operational responsibilities for the Terra blockchain. Phoenix has been one of the leading contributors to the ecosystem, with its latest proposal aiming to restore the connection between Cosmos and Terra. The proposal has received 74.84% support from the community, with voting continuing until August 30.
The shutdown of Terraform Labs and the implementation of the final upgrade Proposal 4818 mark a significant chapter in the Terra ecosystem's history. The future of the network now lies in the hands of the community for further development and support.
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