Company: TLGYF
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001213900-25-125608
Chunk: 206

Company: TLGY ACQUISITION CORP
Filing Date: 2025-12-29
Form: S-4/A
Chunk 206
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 holders or other aligned stakeholders, including entities affiliated with or supportive of the Ethena ecosystem, and we may have limited ability to influence or block proposals that harm our interests. Governance disputes, contentious proposals, or protocol changes could also result in network instability, fragmentation, or forks, which could reduce adoption of the Ethena Protocol, impair validator participation, or negatively affect the value of ENA Tokens. Any such developments could materially impair our operations, validator profitability, infrastructure revenues 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 do 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. A governance proposal was submitted by Wintermute Trading Ltd. (“ Wintermute”), an Ethena ecosystem stakeholder and algorithmic trading firm focused on digital assets, suggesting that certain protocol revenue could be directed toward ENA holders through an as -yetundefined mechanism. Specifically, the Wintermute proposal introduces a potential mechanism which, if approved and activated through protocol governance, would direct a portion of the revenue generated by the Ethena Protocol for the benefit of holders of sENA in some fashion, which has yet to be defined (the “ Wintermute Proposal”). The Ethena Protocol Risk Committee (the “ Risk Committee”) subsequently published parameters that could, if met, trigger implementation of such a mechanism. However, the mechanics of this program have not been publicly communicated, and the program remains discretionary and may be modified, delayed, or never implemented. As a result, we cannot rely on any buyback, burn, or similar mechanism to support the value of ENA Token. 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 any actual or perceived 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 -hed