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Buyback 2.0: Our New $100M Token Repurchase Program

Nov 15·2 min read
Product
Buyback 2.0: Our New $100M Token Repurchase Program

We are pleased to announce that following approval from Nexo’s Board of Directors, we’re launching our new $100 million Buyback program (the Buyback 2.0) for our native NEXO Token. Everything you need to know about this much-desired by our community scheme is in the article below.

Allocated Sum & Mechanism

Nexo will once again begin discretionally and periodically repurchasing its native NEXO Token in the open market as well as at times and prices we consider appropriate. Revenue from trading activity via NEXO Token pairs on our exchange or loans collateralized by our token will аlso be reinvested directly into the buyback.

As stated above, the allocated buyback amount is a record $100 million – nearly 10 times more than our previous $12 million program. Additional budgets may be allocated for future buybacks in accordance with company growth and market conditions.

Timing

The program is set to begin immediately – on November 15, 2021 – and is expected to be completed within six months. After this period, or when the allocated sum of $100 million is reached, the Nexo Board of Directors will review its impact and decide on a potential new buyback scheme.

Transparency & Token Storage

NEXO Tokens purchased via our second Buyback program will be placed in an Investor Protection Reserve (IPR) at the following ERC-20 address: 0x1C433CBF4777e1f0dCe0374d79aaa8ecDC76B497.

As a response to our community’s feedback and to further improve our transparency, we will also be posting overviews of all buyback transactions periodically on our website and through our official communication channels.

Vesting

Repurchased tokens will be placed into vesting accounts for 12 months before they can be used for the daily interest payouts, investments, or token mergers described onward.

Future Plans for Repurchased Tokens

After the 12-month vesting period, tokens bought via the Buyback scheme will be dedicated towards investments in strategic targets via token mergers with applicable vesting schemes to ensure token holder interests.

We will also use part of the repurchased tokens to make daily interest payouts to clients who opt to receive their yields in NEXO Tokens. As per our previous communications, all tokens used for interest payouts in NEXO Tokens are sourced from the open market and therefore will NOT impact the circulating supply.

Buyback 2.0 in Perspective

Following the successful completion of the first Buyback program worth $12 million, this buyback marks our second token repurchase initiative and aligns with Nexo’s plan to further enhance the liquidity of the NEXO Token and boost its value.

The program complements our push to improve institutional access to the crypto space through our recent strategic investments in FINRA member and SEC-registered broker-dealer Texture Capital, decentralized technology provider Qredo, and DeFi-focused enterprise Yield. It also works in conjunction with another major Nexo milestone from September 2021 – our industry-first real-time audit via PCAOB- certified auditor and leading accounting firms in the US Armanino LLP – which, like the explicitly transparent nature of the Buyback 2.0, is geared towards building the ultimate financial clarity around our enterprise and operations.

“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.”

– Antoni Trenchev, Co-Founder and Managing Partner at Nexo.

Buyback 2.0 Is Brought to You by Nexonomics

The second Buyback program is brought to you by Nexonomics 3.0 – the third phase of our ongoing tokenomics initiative designed to upgrade the NEXO Token’s utility and bolster its value. Our tokenomics attracted many new members to Nexo’s ecosystem in the last 12 months, which is why we’re dedicated to keeping up the incredibly successful Nexonomics scheme with the current third edition.

Since its initial launch in October 2020, the first Nexonomics initiative saw the NEXO Token rise in value by 2430%, to an all-time high of $4 in May 2021. Shortly after this achievement, with Nexonomics 2.0, our community welcomed the first NEXO Governance Vote wherein our token holders indicated their preference for daily payouts of up to 12% APY on NEXO Tokens. Since then, the company has returned over $87 million to token holders in daily interest on NEXO and Earn in NEXO payouts.

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