Avalanche to Buy Back 1.97M AVAX from Luna Foundation Guard
- Avalanche Foundation repurchases 1.97M AVAX tokens from Luna.
- The move protects the tokens from liquidation during LFGs bankruptcy.
The Avalanche Foundation has successfully negotiated an agreement to repurchase 1.97 million AVAX tokens from the Luna Foundation Guard (LFG). This repurchase is significant, as it aims to reclaim tokens that were originally sold to LFG in April 2022. However, the deal is currently pending approval from the bankruptcy court overseeing LFGs financial proceedings.
This move comes as a strategic decision by the Avalanche Foundation to protect these AVAX tokens from the potential risk of liquidation. LFG faces bankruptcy, raising concerns that these tokens could become part of the assets liquidated by the bankruptcy trustee. By repurchasing the tokens, Avalanche ensures that it will not violate the original agreement regarding their use. This move allows Avalanche to maintain control over how the AVAX tokens are handled
Avalanche Enhances Ecosystem Stability
Once the court approves the agreement, the 1.97 million AVAX tokens will be returned to the Avalanche Foundations holdings. This step will restore the foundations control over these assets, reinforcing its ability to support future projects and the overall growth of the Avalanche ecosystem. The foundation is taking this initiative to ensure stability in the tokens value. Also to safeguard it from the complications that can arise from bankruptcy-related liquidations.
By bringing the tokens back into the foundations control, Avalanche reinforces its capacity to support ongoing development efforts, including upgrades to its blockchain infrastructure and other ecosystem initiatives. This proactive approach aims to ensure that the AVAX tokens will remain secure and available for the foundations future use.
The courts approval will finalize the process, marking a significant milestone in the foundations efforts to ensure its ecosystems continued success. Additionally, this move will bolster investor confidence as Avalanche works to safeguard its position in the highly competitive cryptocurrency market.
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Read more: https://thenewscrypto.com/avalanche-to-buy-back-1-97m-avax-from-luna-foundation-guard/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
