Company: TLGYF
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001213900-25-125608
Chunk: 178

Company: TLGY ACQUISITION CORP
Filing Date: 2025-12-29
Form: S-4/A
Chunk 178
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, ENA Token may be required to be staked as collateral and may be subject to slashing mechanisms. Although no slashing penalties have been applied to ENA Tokens to date because the proposed Converge Network has not yet launched and no validators are currently active, future slashing events on Converge or other networks or protocols that incorporate ENA Token staking could occur and would be governed by the applicable network’s on -chainrules, which may vary and are subject to change. Any slashing event could result in the loss of a substantial portion of our staked ENA Token, including tokens owned or delegated to us by third parties. In addition, technical bugs, cyberattacks, misconfigurations, or failures of third -partyservice providers (e.g., cloud infrastructure providers or automation tools) could expose us to slashing events or validator downtime. Any such losses could result in reputational damage or reduced trust from ecosystem participants, and have a material adverse effect on our business, financial condition and results of operations. Our business operations may involve running validator nodes and providing related infrastructure software for blockchain networks, including those associated with third-party staking ecosystems. Unpredictable governance decisions or operational failures in such networks could have a material negative impact on our financial condition, results of operations, and business prospects. Our business operations may involve running validator nodes and providing related infrastructure software and services for third -partyblockchain networks and staking ecosystems, including the proposed Converge network, the DVN or other validation or infrastructure software and service opportunities within the Ethena ecosystem that utilize 54 ENA Token, as well as potentially other supported networks. These activities may require us to stake ENA Tokens or other digital assets as collateral and expose us to risks outside of our direct control. Staked tokens are typically locked in smart contracts, and vulnerabilities in the underlying blockchain protocol, validator software, or smart contract code could result in slashing, penalties or the permanent loss of staked ENA Token or other assets. Any such event could materially impair the value of our digital asset treasury and reduce our ability to earn validator rewards or fees from infrastructure software and services. Validator operations are also subject to the governance processes of third -partyblockchain protocols, many of which are administered through decentralized governance frameworks. Governance decisions, including changes to validator selection criteria, staking or service rewards, protocol fees, or security parameters, may be unpredictable and may be influenced by a small number of large stakeholders. Any governance outcome that is misaligned with our interests, or that disadvantages validators or infrastructure