⚡ Avalanche Buys Back $53 Million in AVAX Tokens from LFG
posted 7 Nov 2024
The Avalanche Foundation has finalized the acquisition of 1.97 million AVAX tokens from the liquidated Luna Foundation Guard (LFG). LFG initially acquired these tokens to support the Terra blockchain ecosystem during its active period.
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As part of this reserve-building strategy, LFG acquired $100 million worth of AVAX tokens, while Avalanche Foundation received $200 million worth of UST and LUNA tokens in exchange.
Terraform Labs founder Do Kwon established LFG (a playful acronym for “Let’s Freaking Go!” in crypto slang) in 2022 to help maintain the value of Terra’s algorithmic stablecoin, TerraUSD (UST). LFG’s mission was to create reserves for UST, acquiring Bitcoin and various altcoins, including AVAX.
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As part of this reserve-building strategy, LFG acquired $100 million worth of AVAX tokens, while Avalanche Foundation received $200 million worth of UST and LUNA tokens in exchange.
This partnership was intended to align the interests of both ecosystems. However, Terra retained the AVAX tokens after UST's collapse, creating uncertainty around their market value. In response, the Avalanche Foundation moved to reclaim its tokens.
“We’re pleased to finalize this repurchase, which underscores our ongoing commitment to the development of the Avalanche ecosystem,” said Aytunç Yildizli, CEO and executive director of the Avalanche Foundation.
An Avalanche Foundation representative noted that the repurchased tokens will be directed toward grants and initiatives to support the community and drive further technological development.
“We’re pleased to finalize this repurchase, which underscores our ongoing commitment to the development of the Avalanche ecosystem,” said Aytunç Yildizli, CEO and executive director of the Avalanche Foundation.
An Avalanche Foundation representative noted that the repurchased tokens will be directed toward grants and initiatives to support the community and drive further technological development.
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