End of Legal Responsibility: How January 26, 2025, Redefined the Structure of Terra

At first glance, the January date seemed like a routine administrative event in Terra’s history. But the legal responsibility of Terraform Labs and its disappearance represent a fundamental shift that has radically changed the position of the LUNC, USTC, and LUNA ecosystems. What appeared to be a legal formality turned out to be a pivotal moment for the entire platform.

From verdict to practice: stages of central management collapse

On January 16, 2025, the court issued a ruling to liquidate Terraform Labs — the company ceased its legal existence on paper. But the real turning point came on January 26, when the transfer of power actually occurred. Terraform Labs completely disappeared from the governance structure, leaving behind only a decentralized network.

Key point: when a company disappears, the central governing body disappears too. There is no longer a token issuer, no body capable of making decisions on behalf of the project, no center of accountability to regulators. The company’s legal responsibilities, assets, and obligations are either distributed among creditors or simply canceled. This means regulators no longer have a single address to file claims against.

What this means for the LUNC, USTC, and LUNA tokens

LUNC (Terra Classic), USTC (TerraUSD Classic), and LUNA (Terra) are now completely detached from any commercial structure. Previously, these tokens were tied to Terraform Labs — a company with legal responsibility, assets, and the ability to implement top-down changes. Now, that connection is gone.

As of February 2, 2026:

• LUNC trades at around $0.00 with a daily decline of -1.62%
• USTC remains at around $0.01 with a decline of -3.09%
• LUNA is at $0.07 with a decline of -2.92%

Price movements are now determined solely by market mechanisms: supply and demand, trader sentiment, community activity. No company can influence issuance, and no company bears legal responsibility for the network’s actions.

Management vacuum as an opportunity

The absence of central management has created a situation unusual for the crypto market: complete transparency and the impossibility of top-down manipulation. When there is no company, there is no insider trading at the corporate level. No agreements between shareholders, no strategic decisions that might be revealed later.

This condition is often associated with the beginning of major market cycles. When the only determining factors are pure market forces without external control, prices can move more organically and unpredictably.

What Terra has taught the crypto market

The story of Terra and its tokens demonstrates how the role of central management in DeFi projects can change. The legal responsibility of a company, once seen as a guarantee of security, turned out to be an obstacle to true decentralization. Its disappearance freed the ecosystem but also left tokens entirely dependent on community choice and market dynamics.

For LUNC, USTC, and LUNA, this means that the project’s further development is entirely in the hands of the community. No corporate rescuer, no exit plan from the company, no promises of recovery from the management team. There are only tokens, the network, and people willing to invest in it.