The Avalanche Foundation announced via Twitter that it has reached an agreement to repurchase all AVAX tokens previously sold to the Luna Foundation Guard (LFG) before April 2022. The transaction is currently pending approval from the bankruptcy court. A total of 1.97 million AVAX tokens will be returned to the Avalanche Foundation for holding.

The Avalanche Foundation's move to repurchase 1.97 million AVAX tokens from the Luna Foundation Guard is a strategic step towards regaining control and reducing circulating supply, which could positively impact token price in the long run.