The Avalanche Foundation is repurchasing 1.97 million AVAX tokens it sold to the Luna Foundation Guard (LFG) in April 2022, a month before Terra's blockchain ecosystem collapsed, for $45.5 million.

The repurchase agreement aims to prevent LFG from violating the original agreement's restrictions on the tokens' use and shields them from the complexity of a bankruptcy trustee liquidation, while returning the tokens to the Avalanche Foundation.

The settlement reduces litigation costs, ensures Terraform Labs recovers an amount close to the current market value of the tokens, and was derived based on the volume-weighted average price of AVAX over a seven-day period in early August 2024. Show Less