Company: TLGYF
Filing Date: 2025-09-29
Form Type: S-4
Source: 0001213900-25-092592
Chunk: 166

Company: TLGY ACQUISITION CORP
Filing Date: 2025-09-29
Form: S-4
Chunk 166
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spectus, we expect to be only one of several validators in the CVN validator set approved by Ethena to operate on the Ethena Protocol. As such, we will face competition from a range of market participants, including new and incumbent validators (including those currently operating on the Ethena Protocol), crypto exchanges (centralized and decentralized), 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 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 stake balance increases the likelihood of being selected to validate these blocks and earn rewards. To participate in the CVN or other validation opportunities in the Ethena ecosystem utilizing ENA Token, validators must stake ENA Token. We intend to operate 52 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 and 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 Closing and despite our anticipated pathways to accumulate additional ENA Token thereafter, as a new entrant with no operating history, we may struggle to accumulate or attract sufficient stake to compete effectively