The Avalanche Foundation has repurchased 1.97 million AVAX tokens from the Luna Foundation Guard (LFG), which had acquired the tokens to support the Terra blockchain. The buyback was completed after Avalanche initially filed to purchase the tokens for $45.5 million, but as AVAX was trading at approximately $26.95 at the time, the total value reached around $53 million. LFG had originally purchased $100 million worth of AVAX in 2022 to stabilize the now-collapsed TerraUSD (UST) stablecoin during its operation. Following the massive crash of the Terra ecosystem in May 2022, the Avalanche Foundation worked on this buyback to ensure LFG’s compliance with original agreements and to protect the tokens from bankruptcy proceedings. This initiative is seen as crucial for enhancing the sustainability of the Avalanche ecosystem, with the tokens earmarked for grants, events, and incubators.

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