The main organization supporting the Avalanche (AVAX) blockchain ecosystem announces plans to buy back crypto assets sold to the non-profit organization behind the Terra (LUNA) protocol in the first half of 2022.
Avalanche Foundation say it has entered into an agreement to regain all AVAX tokens sold to the Luna Foundation Guard (LFG) in April 2022.
The organization adds that the plan is now awaiting judicial green light amid the ongoing bankruptcy proceedings of Terraform Labs (TFL), the controversial startup behind the Terra blockchain.
“This action ensures that LFG would not violate the original agreement’s restrictions on the use of the tokens and protects the tokens from the complexities of a liquidator’s liquidation, while returning 1.97 million AVAX to the Foundation’s holdings . This enhances the Foundation’s ability to further support the continued growth and development of the Avalanche ecosystem.”
On May 19, 2022, just days after the implosion of the Terra (LUNA) protocol, Avalanche Foundation announced that both Terraform Labs and LFG had acquired AVAX tokens.
“Terraform Labs (TFL) purchased 1.09 million AVAX, with a one-year lock-up. This amount represents approximately 0.5% of last week’s AVAX volume.
Luna Foundation Guard (LFG) purchased 1.97 million AVAX, to be used for the Terra reserve pool. This allocation represents approximately 0.9% of last week’s AVAX volume. Given the proposed Terra chain fork, LFG has not announced any plans to use the AVAX.
Should a sale of LFG reserves be considered, the Avalanche Foundation stands ready to work with LFG on a sensible trading strategy.”
AVAX is trading at $28.90 at the time of writing.
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