Nexo invests $50M to buy back its native token
Nexo has contributed an extra $50 million to its ongoing repurchase program.
The crypto lending platform Nexo has set aside $50 million to repurchase its native NEXO token as part of an ongoing endeavour to strengthen the ecosystem’s stability and profitability.
The permission issued on August 30 is the third iteration of the company’s repurchase program since the inception of its nexonomics project.
The allocation, according to Nexo co-founder Antonin Trenchev, would allow the firm to expand its product ecosystem and offer investors with pricing stability.
Antoni said: Currently, our investors and customers demand stable footing, and our third token purchase offers this further stability as we emerge from the most recent market turbulence,” he said.
The allocation will be utilized over the following six months to repurchase NEXO tokens. The tokens will be subject to a 12-month vesting period, after which they will be issued as interest payments to token holders.
Nexonomics at work
Nexonomics is a collection of Nexo-implemented enhancements and features designed to increase the value and usability of its native token.
Buyback is the most useful nexonomics mechanism for reducing price volatility, increasing token liquidity, and issuing extra benefits to token holders.
Two repurchase schemes have been successfully completed by Nexo so far. In Dec 2020, Nexo’s Board of Directors authorized the open market buyback of $12 million worth of NEXO tokens. In November of 2021, an extra $100 million was earmarked for the repurchase of tokens.
Each version of the effort has resulted in substantial corporate development. In May 2021, as a result of Nexonomics 1.0, the NEXO token reached an all-time high of $4, marking a 2430% gain year-over-year. With the implementation of Nexonomics 2.0, the firm compensated token holders over $87 million each day at a maximum of 12% APY.