Avalanche States LFG Has Not Disclosed Plans for Its AVAX Tokens -Breaking
- LFG did not disclose plans to use AVAX in light of the fork.
- This comes after LFG and Terraform Labs announced in April that they had collectively acquired $200 million worth of Avalanche’s AVAX tokens.
- Several members have asked about the AVAX reserve details.
Avalanche, a smart-contract blockchain, revealed in a tweet that Luna Foundation Guard (LFG)—the entity behind the reserve fund set up to backstop the Terra blockchain’s now failed UST stablecoin, has “disclosed no plans” for the 2 million AVAX tokens currently sitting in its treasury.
The tweet stated that “Given the proposed Terra fork, LFG has disclosed no plans to use the AVAX.” The Tweet also stated that “should any sales be contemplated for the LFG reserves, the Avalanche Foundation is ready to work with LFG on a sensible trading strategy.”
It comes as a result of LFG’s acquisition of Terraform Labs (TFL), which was announced by the two companies in April.