Avalanche Foundation to Buy Back All AVAX it Sold to Terra’s LFG

The Avalanche Foundation has negotiated an agreement to repurchase all AVAX tokens it previously sold to the Luna Foundation Guard a couple of years back.

Background

• The Luna Foundation Guard purchased $100 million worth of AVAX in April 2022
• This was done to boost its reserves
• The Avalanche Foundation has now come to terms with a deal to buy 1.97 million tokens back from LFG
• According to the team, this repurchase enhances the Foundation’s ability to support the ongoing growth and development within the Avalanche ecosystem

Why should you pay attention?

• At the current market price of $29.33, the value of the 1.97 million AVAX tokens is around $57.78 million
• This marks a 42% dip from the original $100 million  
• The Foundation is now waiting for approval from the bankruptcy court

Who said what?

• The team announced,

"The Avalanche Foundation is now awaiting approval from the Bankruptcy Court"

• They added,

“This action ensures that LFG would not violate the original agreement’s restrictions on the tokens’ use and shields the tokens from the complexity of a bankruptcy trustee liquidation while returning 1.97 million AVAX to the Foundation’s holdings”

In other related news

• The Avalanche ecosystem is back in the spotlight, thanks to the battle royale game Off the Grid
• As reported by blocmates, the battle royale game featuring AAA-level graphics and gameplay — featuring AAA — has an in-game economy built on an Avalanche subnet