LayerZero Foundation, the non-profit entity overseeing the development of the LayerZero blockchain interoperability protocol, today initiated a buyback of 50 million ZRO tokens from early backers.

The buyback targets tokens held by initial investors who provided funding during the project’s early development phases. Token buybacks in crypto are typically used to reduce circulating supply and signal long-term confidence in the protocol.

ZRO launched in June 2024 with an initial fully diluted valuation of around $3.0 billion. The foundation distributed 8.5% of the token supply through an airdrop on launch day to bootstrap community participation.

LayerZero’s protocol connects over 50 blockchains and has facilitated more than 100 million cross-chain messages since launch, enhancing liquidity across decentralized applications.