• Avalanche has purchased again 1.97 million AVAX tokens from the defunct Luna Basis Guard.
• The $53 million share buyback strengthens Avalanche's ecosystem and long-term objectives.
• Reflecting the power of market confidence, AVAX's value has elevated by 4.0% over the previous week.

In a major transfer to strengthen the ecosystem, the Avalanche Basis efficiently repurchased 1.97 million AVAX tokens from the now-defunct Luna Basis Guard (LFG).

This buyback, valued at roughly $53 million primarily based on present market costs, marks the conclusion of a strategic effort to reclaim the tokens initially acquired by LFG in 2022 to assist the Terra blockchain ecosystem. .

The token was initially bought by LFG for $100 million with the aim of stabilizing Terra's TerraUSD (UST) stablecoin, which was pegged to the US greenback.

Terraform Labs, the mother or father firm of the Terra blockchain, had established LFG as a reserve fund to safe UST by accumulating each Bitcoin and different altcoins akin to AVAX.

Nevertheless, after the collapse of the Terra ecosystem in Could 2022 because of UST dropping its greenback peg, LUNA's worth plummeted and its once-promising technique crumbled.

Within the aftermath of this disaster, the Avalanche Basis moved to barter a deal to purchase again 1.97 million AVAX tokens. In doing so, Avalanche ensured that LFG wouldn’t violate its unique settlement with the Basis, significantly concerning using the token.

Buybacks additionally shield tokens from potential chapter proceedings and stop them from being liquidated in courtroom.

On the time of the repurchase, the worth of the AVAX tokens was $26.84 every, growing the overall quantity from the unique buy value of $45.5 million to $53 million. This motion underscores Avalanche's dedication to the long-term sustainability of its ecosystem.

Repurchased tokens assist Avalanche ecosystem efforts

Recovered tokens will probably be used to assist numerous initiatives inside the Avalanche ecosystem, together with grants, occasions, and incubators.

The strategic share buyback is a crucial step in sustaining AVAX's stability and strengthening the Basis's efforts to drive innovation and progress within the blockchain house.

By finishing the buyback, Avalanche not solely mitigates the danger of Terra's collapse, but in addition reaffirms its place as a number one power within the blockchain trade.

AVAX token is on robust bullish momentum

The token buyback comes at a time when the worth of AVAX is skyrocketing. At its present value of $26.84, AVAX is steadily gaining momentum, reflecting rising investor confidence and the continued power of the Avalanche ecosystem.

The token has gained 4.0% over the previous week and has elevated by a formidable 108.8% over the previous 12 months.