LayerZero Foundation Buys Back 50M ZRO Tokens to Boost Growth
The LayerZero Foundation has executed a strategic ZRO token buyback of 50 million tokens—about 5% of the total supply—from early investors. This latest move, independent of Stargate revenues (which will fund future repurchases), follows a16z Crypto’s April investment and brings total buybacks to over $150 million in 2025. The action comes after the Stargate DAO’s dissolution returned $110 million in assets to the original developer. Launched in June 2024 with a $3 billion fully diluted valuation and an 8.5% airdrop to kick-start community participation, LayerZero now connects 50+ blockchains and has processed 100 million cross-chain messages, enhancing DeFi liquidity. By reducing circulating supply and reinforcing tokenomics, the ZRO token buyback signals the foundation’s long-term commitment to sustainable growth. Traders should watch for supply-demand shifts, potential price support, and renewed market interest following this initiative.
Bullish
A large-scale ZRO token buyback directly reduces circulating supply and demonstrates the LayerZero Foundation’s commitment to strengthening tokenomics and long-term growth. In the short term, this supply reduction can create upward price pressure as buyback demand hits the market. Over the long term, consistent repurchase programs and strong protocol fundamentals—such as multi-chain connectivity and high messaging volume—can bolster trader confidence, attract new investors, and sustain a bullish outlook for ZRO.