Avalanche Foundation Buys Back 1.97M AVAX Tokens from Luna Foundation Guard

These tokens were initially acquired to bolster the Terra blockchain ecosystem but have since been reclaimed.

The Avalanche Foundation has finalized the repurchase of 1.97 million AVAX tokens previously held by the now-defunct Luna Foundation Guard (LFG).

These tokens were initially acquired to bolster the Terra blockchain ecosystem but have since been reclaimed.

The Avalanche Foundation described the buyback as a strategic move to ensure compliance with original agreements and to shield the tokens from potential complications in a bankruptcy liquidation.

AVAX Tokens Appreciate in Value Amid Market Rally

At the time of the agreement, the tokens were valued at $45.5 million, though their current market price places their worth at approximately $53 million.

The Avalanche Foundation emphasized that this move ensures LFG adheres to initial usage restrictions while enabling Avalanche to reclaim its tokens.

Per the project, the reclaimed AVAX will support the Avalanche ecosystem through initiatives such as grants, events, and incubation programs.

The LFG was established in 2022 by Terraform Labs founder Do Kwon to safeguard Terra’s algorithmic stablecoin, TerraUSD (UST).