Terraform Labs has decided to cease operations following a $4.47 billion settlement with the U.S. Securities and Exchange Commission (SEC). The control of the Terra blockchain will now be handed over to the community.
Chris Amani, CEO of Terraform Labs, announced that the company will shut down after reaching a settlement with the SEC. This decision marks the end of Terraform Labs‘ direct involvement in the Terra ecosystem.
Amani explained, “[Terraform Labs] always intended to dissolve at some point, and that point is now. We will be winding down operations completely. We were well-positioned to accelerate things if we had won the trial, but unfortunately, we lost, and as a result, can no longer operate.”
As part of this transition, the company plans to sell key projects within the Terra ecosystem. These projects will now be managed by the Terra community, ensuring the continued development and operation of the Terra blockchain.
Summary Review: Terraform Labs‘ decision to end its operations and hand over control to the community marks a significant shift in the governance and future of the Terra blockchain. This move aims to empower the community to take charge of the ecosystem, fostering a decentralized and community-driven approach to its development.
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