Company: TLGYF
Filing Date: 2025-09-29
Form Type: S-4
Source: 0001213900-25-092592
Chunk: 167

Company: TLGY ACQUISITION CORP
Filing Date: 2025-09-29
Form: S-4
Chunk 167
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 with more established validators. This could limit our participation in block production, reduce our staking rewards or other transaction fees, and adversely affect our validator -relatedrevenues. We may be materially affected by declining staking yields, validator economics, or adverse changes to consensus mechanisms across the blockchain networks we support. Our revenue model will largely depend on our ability to earn staking rewards generated from our operating nodes on the Ethena Protocol and any other networks we may support in the future. The economics of these staking rewards are subject to protocol -levelparameters (e.g., network usage, reward schedules, slashing penalties, validator set limits) that may change without notice and are often governed by decentralized communities or core developers. Since Ethena is currently running on the Ethereum blockchain, the staking of ENA Token is currently subject to the policy parameters set by the Ethereum blockchain. When Ethena migrates its protocol to the proposed Converge network or other validation opportunities in the Ethena ecosystem utilizing ENA Token, the staking of ENA Token will be subject to the policies adopted by the proposed Converge network or other blockchains, which are not yet known. If the proposed Converge network’s policies are particularly onerous or provide for reduced staking yields, increased hardware or operating costs, higher slashing risks, or result in a decline in network usage, or if changes in its policies in the future lead to such results, then it could negatively impact our validator revenues and impair our profitability. Additionally, changes to consensus mechanisms, such as a shift from PoS to alternative models, could render our business obsolete on affected chains. See “ — Our validator business depends on the successful launch and operation of the Converge network, and any delay, failure to launch, or changes in anticipated procedures and policies could materially and adversely affect our business. ” Our validator business may be subject to slashing penalties or loss of funds due to validator misbehavior, downtime, or software vulnerabilities. Our validator operations will be exposed to “slashing” risk, a punitive mechanism built into many PoS networks designed to discourage validator misbehavior or actions that could compromise network security or performance. Slashing can occur if a validator engages in malicious or negligent behavior, such as double -signing(signing conflicting blocks) or failing to meet network uptime or performance requirements. When a slashing condition is triggered (similar to a liquidation event in traditional finance), a predefined portion of the offending validator’s stake (akin to collateral) is confiscated. The amount slashed