VeChain Kicks Off the First Phase of the $25 Million Equivalent of VET Buyback Plan
Since the VeChainThor Mainnet Launch, VeChain Ecosystem has enjoyed substantial growth and made remarkable achievements in terms of pushing ahead the mass commercial adoption of blockchain technology. To facilitate the process and further uphold VeChain's vision of creating valuable transactions, the VeChain Foundation recently announced a VET buyback plan worth up to $25 million. The first phase of the buyback, which amounts to no less than $5 million on the open market, will be implemented over the next quarter, starting in July 2019.
The Foundation introduced the buyback strategy as part of our broader efforts to further support community building and promote the development of the VeChain Ecosystem. In addition to its funds, the Foundation will set aside a portion of its revenue to support the plan.
The VET acquired will be injected into VeChain's funding pools. With more VET in stock, more VTHO will be generated, thus allowing the Foundation to provide more financial support for projects to operate on the VeChainThor Blockchain. Hence, the Foundation can enable a lowered threshold for developers, projects and enterprises to try out the VeChainThor Blockchain and find out for themselves how blockchain technology can be leveraged to empower their projects or businesses, thereby boosting the progress of the ecosystem.
Another major issue that VeChain aims to tackle with the introduction of this plan is to explore the feature of VET being used as smart money and store of value within the VeChain Ecosystem and the ecosystem of our affiliations. VeChain has been endeavored to establish VET as a value-transfer medium as well as a store of value, to enable rapid value circulation within the ecosystem. Due to the fact that the Foundation had not allotted any pools of VET for this purpose, with a portion of the newly acquired VET, VeChain will experiment with various jurisdictions and financial institutions on the medium of transfer and store of value concepts. More details to be announced as timing matures.
For openness and transparency, all VET obtained through this buyback program will be sent to the following address: 0xCBb08415335623A838E27d22Ac7FDF8A370AF064. The information related to the buybacks will be disclosed in VeChain Financial Executive Report, starting from Report Vol.8.