Originally published on: November 07, 2024
The Avalanche Foundation recently announced the successful completion of a token buyback process, reclaiming 1.97 million AVAX tokens from the Luna Foundation Guard (LFG). Originally acquired by the LFG to support the Terra blockchain ecosystem, these tokens were repurchased for approximately $53 million at current market prices.
Initially intended to be purchased at $45.5 million, the market value of AVAX tokens surged to $26.95 during the buyback, resulting in the higher acquisition cost. This move marks an important milestone for Avalanche in its efforts to support the sustainability of its ecosystem.
Established in 2022 by Terraform Labs founder Do Kwon, the LFG aimed to secure Terra’s TerraUSD stablecoin through strategic acquisitions of assets like Bitcoin and altcoins, including AVAX. However, following the collapse of the Terra ecosystem in May 2022, the Avalanche Foundation stepped in to repurchase the tokens from LFG.
By completing the token buyback, Avalanche ensures that the original agreements with LFG are upheld, preventing any potential violations. The repurchased tokens will be utilized by the foundation to bolster various initiatives such as grants, events, and incubators, further strengthening the Avalanche ecosystem.
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