Avalanche’s recent proposal marks a significant move in its long-term strategy: the Foundation is in advanced discussions to raise roughly $1 billion to establish two digital asset treasury companies in the United States. One vehicle is expected to be funded via a private placement of about $500 million, while the other may be formed through a Special Purpose Acquisition Company (SPAC) also targeting approximately $500 million.

These treasury firms are designed to purchase millions of AVAX tokens, including tokens sold by the Foundation at a discounted price, helping to absorb supply from the market and potentially pushing up demand and price. this kind of token‑buying or buyback scheme is increasingly popular among crypto projects seeking to strengthen their tokenomics and boost investor confidence. 

Market reaction has been positive. AVAX has jumped in price, reaching a multi‑month high after the news broke. trading volumes spiked, indicating renewed interest from traders and investors curious about how this structure might affect token supply and value dynamics.

However, there remain uncertainties. As of the latest reports, no public regulatory filings or formal announcements have confirmed all the details—such as exact terms, discount rates, lockups, or precise timing.also, when large amounts of tokens are bought back or taken off the market, questions about governance, transparency, impact on circulating supply, and possible regulatory scrutiny tend to follow. If Avalanche can execute this plan cleanly, it could serve as a model for how blockchain projects build credible long‑term treasuries.