Company: TLGYF
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001213900-25-125608
Chunk: 177

Company: TLGY ACQUISITION CORP
Filing Date: 2025-12-29
Form: S-4/A
Chunk 177
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 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 or delegation to compete effectively with more established validators. This could limit our participation in block production, reduce our staking rewards or other protocol fees, or diminish our validator -relatedrevenues, any of which could materially and adversely affect our business, financial condition and results of operations. We may be materially affected by declining staking yields, validator economics, or adverse changes to consensus mechanisms across the blockchain networks we support. Any revenue we generate from validator or infrastructure operations will depend on protocol -levelparameters, including network usage, reward schedules, fees, slashing penalties, and validator set limitations, which may change without notice and are often governed by decentralized governance processes. Because the Ethena Protocol currently operates on the Ethereum blockchain, any future staking or validator -relateduse of ENA Token would be subject to the policies of Ethereum or any successor network, including Converge, if and when launched. If such policies provide for reduced rewards, increased operating costs, higher slashing risks, or reduced network activity, or if consensus mechanisms are modified or replaced, the economics of validator or infrastructure operations could become unfavorable or obsolete. Any such developments could materially and adversely affect our business, financial condition and results of operations. Our validator and infrastructure business may be subject to slashing penalties or loss of funds due to validator misbehavior, downtime, or software vulnerabilities. Our validator and infrastructure operations may be exposed to “slashing” risk, a punitive mechanism built into many PoS networks designed to discourage validator misbehavior or failures that could compromise network security or performance. On -chain, slashing is implemented automatically by the protocol and can occur if a validator engages in malicious or negligent behavior, such as signing conflicting blocks (known as double signing), failing to meet network uptime or performance requirements or otherwise violating consensus rules. 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 automatically confiscated. The amount slashed and how it is handled (e.g., whether it is burned, redistributed, or both) depends on the network’s policies. Slashing may also result in a validator being removed from the designated validator set. If and when we operate validator infrastructure for networks within the Ethena ecosystem, including the proposed Converge network, which is currently the only network planned to support staking of ENA Tokens with slashing mechanisms