Crypto lending platform Nexo has allocated $50 million to buy back its native NEXO token as part of an ongoing initiative designed to bolster the stability and profitability of its ecosystem.
The approval announced on Aug. 30 is the third iteration of buyback programs executed by the company since the launch of its nexonomics initiative.
Today we are announcing our third $50М Buyback. 🎉
Thе allocation is a result of our solid liquidity position and readiness to spur on our own products and community as the $NEXO Token comes to play an increasingly important role within our ecosystem.https://t.co/y7gTNMZC9q
— Nexo (@Nexo) August 30, 2022
Nexo Co-Founder Antoni Trenchev stated that the allocation will help the company grow its product ecosystem as well as provide price stability for investors.
Right now, our investors and clients require solid ground to walk on, and our third token buyback ensures this added stability as we emerge from the latest market rollercoaster,” he added.
The allocation will be used to repurchase NEXO tokens over the next six months. The tokens will be subject to a 12-month vesting period and will be distributed as interest payout to token holders once the lock-up term has elapsed.
Nexonomics in play
Nexonomics is a series of upgrades and features implemented by Nexo to drive the value and utility of its native token.
Buyback has been the handiest nexonomics tool that helps to reduce price volatility, boost token liquidity and issue additional rewards to token holders.
So far, Nexo has successfully executed two buyback programs. Back in Dec 2020, Nexo’s Board of Directors approved the repurchase of $12 million worth of NEXO tokens from the open market. An additional $100 million was allocated in Nov. 2021 to buy back more tokens.
Each iteration of the initiative has returned significant growth to the company. Nexonomics 1.0 saw NEXO token rise to an all-time high of $4 in May 2021, representing a 2430% increase, year-over-year. With the execution of Nexonomics 2.0, the company paid out over $87 million to token holders of up to 12% APY daily.
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