The Avalanche Foundation has announced its plan to buy back 1.97 million AVAX tokens that were sold to the Luna Foundation Guard (LFG) before April 2022. This move is currently awaiting approval from a bankruptcy court.
In a social media post, the Foundation explained that the buyback aims to prevent LFG from violating the original terms governing the tokens’ use and to protect AVAX from potential complications in the bankruptcy process.
By repurchasing these tokens, the Foundation hopes to strengthen its asset base and support the growth of the Avalanche ecosystem.
If approved, the buyback will return 1.97 million AVAX tokens to the Foundation, providing more resources to back new projects and improve blockchain functionality.
The decision is seen as a way to stabilize the AVAX token market by reducing the circulating supply, potentially mitigating price volatility. Additionally, it gives the Foundation greater flexibility in managing its assets, which could be crucial for future development and community initiatives.
Reacquiring the tokens could also help reinforce strategic partnerships, aligning the growth efforts of Avalanche and LFG in the future.
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
