NEXO’s board of directors had authorised a $100 million buyback program for its native token known by the same name. The program will start immediately, allowing the company to make period purchases of its native token, with the program ending in six months. The form has said that it would consider a second buyback program once the current one is completed.
NEXO intends to use the repurchased tokens for strategic investment purposes such as token mergers that include vesting schemes to protect the interests of token holders. In addition, NEXO will dedicate a portion of the repurchased tokens to paying out a daily dividend to clients who want to receive their yields via NEXO tokens. The organisation previously clarified that it would purchase all the NEXO tokens used to pay yields on the open markets.
The repurchased NEXO tokens will be kept in an Investor Protection Reserve (IPR) with a public ERC-20 address for transparency purposes. Each tranche of the repurchased NEXO tokens will have a vesting period of 12 months from the repurchase date. Once the vesting period expires, the tokens will only be available for daily interest payouts, token mergers, and other purposes.
The latest buyback program will be NEXO’s second one after completing a $12 buyback program earlier this year. The organisation has not ruled out any future buyback programs.
Antoni Trenchev, Nexo’s Co-Founder and Managing Partner commented:
The buy-back program announced today reflects our strong financial position and underscores our ability to simultaneously upgrade our products, maintain a strong balance sheet, and invest in alternative growth strategies, all while providing significant utility and growth to NEXO Token holders. As Nexo’s market share increases and the industry matures, we’ll continue to seek acquisitions and token mergers to cement our leadership position in the crypto lending ecosystem.”