The LayerZero Foundation said it had executed a buyback of 50 million of its native ZRO tokens from early investors, which represents 5% of the total ZRO token supply.
The buyback aims to reduce the circulating supply of ZRO, stabilize the token’s price, and support the future growth of the LayerZero ecosystem.
“In addition to the a16z Crypto investment in April, this marks over ~$150m in ZRO repurchased this year. Stargate revenues continue to drive future buybacks,” said the LayerZero Foundation.
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They also noted that the buyback was discretionary in nature, separate from an ongoing program related to its Stargate acquisition finalized last month.
As part of that deal, LayerZero agreed that for the first six months, 50% of Stargate’s revenue generated by fees would be distributed to holders of the previously staked veSTG tokens, while the other 50% would be used to buy back and burn ZRO tokens.
