Chris Amani, CEO of Terraform Labs, has announced that the company will dissolve its operations, urging the community to take over. Terraform Labs, the developer of the Terra blockchain, plans to sell its projects within the Terra ecosystem, including Pulsar Finance, Station Wallet, and Enterprise DAO.

This decision comes in the wake of a massive $4.47 billion settlement with the U.S. Securities and Exchange Commission (SEC) related to the dramatic collapse of the UST algorithmic stablecoin in 2022.

"TFL always intended to dissolve at some point, and that point is now,” Amani stated on X, signaling the end for Terraform Labs. “We will be winding down operations completely.”

Amani also mentioned that the firm plans to propose a community initiative to burn all unvested Luna, the native token of Terraform. “Anything that remains vested in our wallets will be burned by TFL,” he affirmed, marking a decisive end to the company’s direct involvement with the token.

He suggested that the Terra and Terra Classic blockchains could continue under the control of the community. “The community will need to take over ownership of the chain,” Amani stated, proposing a community-led governance model that could redefine the operation of blockchain projects post-crisis.

The SEC initially charged Terraform and its co-founder, Do Kwon, in February 2023, accusing them of misleading investors and violating federal securities laws through fraudulent activities related to the sale of unregistered securities.

The proposed settlement, revealed on Wednesday, includes $3.58 billion in disgorgement and a $420 million civil penalty. It also prohibits Kwon from serving as an officer or director of any public company. Additionally, Do Kwon is required to contribute approximately $204 million to a bankruptcy estate for Terraform, aimed at compensating the investors harmed by the scheme.

Amani, formerly the COO of Terraform, took over from Kwon in July 2023. Terraform filed for Chapter 11 bankruptcy in a Delaware court in January.

As Terraform Labs steps down, the future of the Terra blockchain now rests in the hands of its community, which faces the challenge of steering the project forward amidst the fallout from the SEC settlement and the dissolution of the company.