Company: TLGYF
Filing Date: 2025-09-29
Form Type: S-4
Source: 0001213900-25-092592
Chunk: 193

Company: TLGY ACQUISITION CORP
Filing Date: 2025-09-29
Form: S-4
Chunk 193
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 our ENA Token holdings. Further, governance outcomes may be disproportionately influenced by larger token holders or other aligned stakeholders, and we may have limited ability to influence or block proposals that harm our interests. Any adverse governance decisions could materially impair our operations, validator profitability, or the long -termvalue of our ENA Token holdings. The long-term value of ENA Token is uncertain because its current utility is limited. ENA Tokens currently function primarily as a governance tool for the Ethena Protocol and does not carry intrinsic revenue, dividend, or ownership rights. Its long -termvalue is speculative and depends on the successful development of expanded use cases, such as staking rewards, incentive mechanisms, or other ecosystem -drivenutilities. If the Ethena community fails to expand its utility, demand for ENA Token could stagnate, undermining its market value and the value of our treasury holdings. In addition, the Ethena Protocol has communicated a buyback and burn policy for ENA Token designed to drive long -termvalue. However, this program is subject to decentralized governance and may be modified, delayed, or discontinued. If the buyback and burn policy is reduced or abandoned, market sentiment toward ENA Token could deteriorate. Any decline in ENA Token’s long -termutility or perceived value could materially reduce the effectiveness of our treasury strategy and adversely affect our financial condition. The success and stability of USDe is critical to the Ethena ecosystem, and failures could materially harm our business. The success of the Ethena ecosystem depends on the adoption and stability of USDe, a synthetic stablecoin issued by an affiliate of Ethena Labs and backed by delta -hedgedstrategies using perpetual futures contracts. The Ethena Protocol’s reliance on perpetual contracts exposes it to funding risks; prolonged periods of negative funding rates could deplete the reserve fund, reduce protocol revenue, and undermine confidence in USDe. Although historical data suggests negative funding periods are often short -lived, there is no guarantee that extreme or sustained funding pressures would not threaten USDe’s peg and destabilize the ecosystem. The Ethena Protocol also uses liquid staked tokens (“ LSTs”), such as stETH, as collateral for its derivatives positions. If the value of an LST materially diverges from its underlying asset, exchanges may forcibly liquidate positions, causing realized losses for the protocol. A severe depeg of an LST or a critical smart contract vulnerability in an LST asset could impair collateral value, force hedging unwinds, and