Nexo Launches $12M Buyback Program
The details about the new Nexo Buyback program are hot off the press: Nexo’s Board of Directors has just approved the repurchase of up to $12 million worth of our native NEXO Token on an open-market principle, with this decision coming into effect immediately.
As a part of our recently launched tokenomics overhaul Nexonomics, this latest development seeks to reward NEXO Token holders for their investment and loyalty, and bolster the stability and growth potential of our native token. Without further ado, we present the Nexo Buyback program.
- Storage: For full transparency, repurchased NEXO Tokens will be placed in an Investor Protection Reserve (IPR), visible at this public ERC-20 address. Tokens locked into the IPR will not be eligible for dividends, making the program all the more beneficial to loyal NEXO Token holders during future dividend distributions.
- Vesting: Each buyback will vest for a minimum of 12 months after repurchase.
- Once vested, repurchased tokens may be re-locked or withdrawn to be used for interest and reward payments, dividend distributions and liquidity provision on decentralized exchanges.
- Future buybacks: Additional budgets may be allocated for future repurchases in accordance with company growth and market conditions.
The Buyback program boosts token liquidity, thus reducing price volatility, and gives token holders additional security that the token’s value will continue to rise. As we continue to maintain a limited NEXO Token supply, our Buyback program lays the foundations for the sustainable growth of the NEXO economy.
Commenting on the Buyback program, Antoni Trenchev, Co-founder and Managing Partner of Nexo, said:
“Nexo has had another record year, affording us the flexibility to give back to our clients and reinvest in the company and the NEXO Token as an integral part of the business. The market is finally acknowledging what the pricing models have been saying since our 2018 token sale – that the NEXO Token holds tremendous potential that has so far been undervalued. Our first buyback program highlights the Nexo team’s firm belief in our native token’s prospects and further incentivizes investors to share our view.”
“We have seen demand for the NEXO Token progressively increase, confirming its desirability – its price tripled and over 60% of our clients chose to earn interest in NEXO Tokens over the past month. With buybacks guaranteeing the supply remains limited, we are closing the circle and laying the groundwork for an even more desirable NEXO Token with an even stronger token economy.”
In late October, against a backdrop of volatility spurred by the ongoing COVID crisis and exacerbated by the US elections, Nexo launched Nexonomics – a series of upgrades and features for the NEXO Token designed to drive its tokenomics, reinforce its utility, and boost its value in the digital economy. With digital assets increasingly in the global spotlight as investors seek stability, clearer monetary policy, and long-term investment over speculation, the Buyback program is the next step in a series of moves aimed at providing sustainable financial instruments that complement and amplify holders’ investment strategies.