Company: TLGYF
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001213900-25-125608
Chunk: 176

Company: TLGY ACQUISITION CORP
Filing Date: 2025-12-29
Form: S-4/A
Chunk 176
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 a result, we will face competition from a range of market participants, including new and incumbent validators (including those currently operating on the Ethena Protocol), centralized and decentralized crypto exchanges, DeFi protocols, vertically integrated staking providers, infrastructure -as - a-servicecompanies, and, in some cases, the blockchain foundations or communities themselves. Many of our competitors may have significantly greater resources, longer operating histories, and deeper technical capabilities than we do. Competitive pressures may require us to lower our fees, invest aggressively in technology or security infrastructure, or otherwise engage in practices that could reduce our margins or impair our financial performance. Additionally, technological changes or shifts in validator incentives or other operational procedures, such as fee reductions, changes in consensus mechanisms, or increased centralization, may adversely impact our ability to operate our business and offer competitive services. We may be disadvantaged in competing with larger validators due to the economic structure of proof-of -stake networks. PoS networks, like the Ethereum, the anticipated Converge networks and other potential validation opportunities in the Ethena ecosystem utilizing ENA Token, utilize an efficient consensus mechanism that relies on validators staking their digital assets to secure the network in exchange for a chance of getting to validate a new transaction, update the blockchain, and earn a reward. PoS networks generally favor validators with larger staking balances, as a greater amount of staked assets may increase the likelihood of being selected to validate these blocks and earn rewards. This description, however, reflects general PoS mechanics and the specific design, validator selection criteria, reward structures and economic parameters of the Converge network or any other network on which we may operate validator infrastructure have not been finalized as of the date of this proxy statement/prospectus. 53 To participate in the CVN or other validation opportunities in the Ethena ecosystem utilizing ENA Token, validators are expected to be required to stake ENA Token. We intend to operate our validator business using the ENA Token in our treasury as collateral for our validator operations. We initially plan to accumulate the ENA Token in our treasury through the PIPE and ENA Contribution at Closing and after the Closing, through purchases of additional discounted ENA Token from the Ethena Foundation under the terms of the Collaboration Agreement, as well as through accumulations resulting from our staking efforts and potential protocol transaction fees earned through the CVN or other validation opportunities in the Ethena ecosystem utilizing ENA Token. Although we expect to own approximately 20% of the total ENA Token currently in existence at