Avalanche Foundation Seeks Court Approval for AVAX Token Buyback

The Avalanche Foundation has revealed plans to buy back all AVAX tokens that were sold to the Luna Foundation Guard (LFG) before April 2022.

The buyback involves 1.97 million AVAX tokens and is pending approval from bankruptcy court.

In a social media post, the Foundation detailed that this agreement is aimed at preventing LFG from breaching the original terms governing the tokens’ usage and safeguarding AVAX from potential issues during the bankruptcy process.

By repurchasing these tokens, the Avalanche Foundation aims to bolster its asset base and enhance its ability to foster the growth of the Avalanche ecosystem.

If granted approval, the repurchase will bring 1.97 million AVAX tokens back into the Foundation’s control, further enabling it to support upcoming projects and enhance the blockchain’s functionalities.