Terraform Labs will make one last upgrade to the Terra network before closing down

What’s new? Terraform Labs (TFL), the company behind the development of the Terra blockchain, has announced that as part of its agreement with the US Securities and Exchange Commission (SEC), it has begun winding down operations. As such, it will not be able to support future upgrades to the blockchain going forward.

Source: X.com

What else is known? The last Terra upgrade to be implemented by the company itself will be offering number 4818. It is designed to make the necessary critical changes and ensure the stability of the network after the company stops supporting it.

TFL expects the community to take responsibility for maintaining the blockchain and implementing new improvements after the company closes. As an example, TFL cited Phoenix Directive’s initiative to develop a new Terra roadmap.

The initiative, which has brought together several development teams, intends to improve the efficiency and sustainability of the blockchain in the long term.

Phoenix Directive’s strategic goals include building community trust by implementing a transparent structured plan, stimulating blockchain activity, increasing its liquidity and total value locked (TVL), developing projects that add value to Terra, improving the tokenomics of the native coin Luna, and creating healthy incentives for active users.

The members of the initiative also intend to maintain and develop the codebase, implement updates to improve security and work with node operators to maintain the network infrastructure.

TFL, in order to settle the SEC’s fraud charges, has agreed to pay a $4,5 billion fine as well as cease operations. To pay the fine, the company is selling off four subsidiaries.

The Terra blockchain was used to issue the dollar-pegged algorithmic stablecoin UST and its supporting token LUNA. The project collapsed in May 2022, when the rates of both assets rapidly collapsed to almost zero. The head of TFL Do Kwon did not give detailed comments on the incident for a long time and was on the run, until last March he was detained in Montenegro with a fake passport.

The extradition of the businessman was fought for by the United States and South Korea, of which he is a citizen. Kwon faces fraud charges in both countries. In early August, it was reported that Kwon was decided to be extradited to Korea, as the latter had filed a request earlier, but then the decision was sent back for reconsideration at the request of the Montenegrin prosecutor’s office.