Ontology team announced today that it has completed a major buyback of ONT tokens. The team bought nearly 2.5 million (exactly 2,446,051) ONT tokens from Binance, Upbit Global and Gate.io exchanges, with its investment returns. This buyback was carried out to improve the price and economy of the Ontology’s native ONT tokens.
It was also announced by the team that total ONT tokens staked on the Ontology network have reached a staggering 121M figure (exactly 121,429,253 ONTs) which represent 18.539% of the total supply.
[1/2] By April 13th, 2020, the #Ontology Ecosystem Fund has bought back a total number of 2,446,051 $ONT from @binance, @upbitglobal, @gate_io with its investment returns. For more information, please check the below buy-back address: AMQAYmyXTTqG7VXLEPHCkqbbiSZnUk8Set— Ontology (@OntologyNetwork) April 13, 2020
A buyback program is a method used by companies to purchase their outstanding shares or tokens, from the market. This action has the benefit of reducing the number shares or tokens in circulation, effectively increasing the value of remaining tokens. Also, it can reduce the risk of a few parties, accumulating a lot and having the ability to single-handedly impact the price or governance of the network, negatively. It can also be understood, as the company’s investment in itself and a healthy sign that the entity has enough financial resources.
Ontology is a high performance public blockchain and distributed collaboration platform. It essentially provides framework for development of different blockchains, suited for specific businesses with various governance models.