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.

This move by the Avalanche Foundation is a strategic step to regain control over previously sold tokens, which can positively impact the token's supply dynamics. The repurchase of 1.97 million AVAX tokens from the Luna Foundation Guard may also boost market sentiment, as it signals confidence in the project's future. However, the actual impact will depend on the court's approval and the subsequent market reaction.