Nexo has announced the launch of an initial $12 million buyback program for its NEXO Token, following board approval that took effect immediately. The repurchases will be conducted on the open market and form part of the company’s broader tokenomics initiative, known as Nexonomics.
According to the company, the buyback is intended to strengthen the token’s value proposition, improve stability, and support long-term growth. Nexo said the NEXO Token had already posted a 160% price increase since the Nexonomics campaign began in late October. Co-Founder and Managing Partner Antoni Trenchev said the company’s record year gave it the flexibility to reinvest in both its platform and its native token while also returning value to clients.
Repurchased Tokens to Be Locked On-Chain
Nexo stated that all tokens acquired through the program will be placed transparently on-chain in an Investor Protection Reserve, or IPR, at the ERC-20 address 0x1C433CBF4777e1f0dCe0374d79aaa8ecDC76B497. Each buyback tranche will remain vested for a minimum of 12 months after repurchase.
The company added that tokens held in the IPR will not be eligible for dividends. In practice, that structure could make future dividend distributions more favorable for long-term token holders, since the locked reserve tokens would not share in those payouts. Nexo presented the mechanism as a way to reward loyal holders while reinforcing its token economy.
Future Use Cases and Additional Buybacks Remain Possible
Once the vesting period ends, management may choose to re-lock the repurchased tokens or withdraw them for uses including interest payments, cashback rewards, dividend distributions, or liquidity provision on decentralized exchanges. Nexo also said additional budgets could be allocated to future repurchase rounds depending on company growth and market conditions.
Trenchev said demand for the token has been rising, noting that more than 60% of clients chose to earn interest in NEXO Tokens over the previous month. He argued that the buyback helps maintain limited supply while laying the groundwork for a stronger and more attractive token economy.
Nexo said it manages more than $2 billion in assets, serves over 1 million users across 200+ jurisdictions, and has processed more than $5 billion since launching in 2018. As the information comes from a press release, readers should conduct their own due diligence before making investment decisions.