VeChain Begins First Phase of VET Buyback Plan
In late June, the CEO of VeChain, Sunny Lu revealed the Foundation’s plan to conduct a VET buyback plan of up to $25 million USD over the next twelve months during an AMA session. The first phase of the buyback which is meant to incentivize stakeholders in the ecosystem has kicked off. Confirming the news in an official post, the team said:
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 purchased VET will be injected into the project’s funding pools. In addition to further strengthening the development of the VeChain ecosystem, the buyback will increase the amount of VET in stock, leading to more VTHO generation. Since projects that operate on the VeChainThor Blockchain need to purchase VTHO, the Foundation can lower the threshold for enterprises and developers who want to try out the Thor Blockchain.
Secondly, VeChain is looking at the possibility of VET becoming smart money and a store of value within the VeChain network. The newly acquired VET will be used to explore mediums by which VET can store and transfer value across jurisdictions.