The Ethena Foundation announced major updates today, including investor buyouts, to address the early investor monthly overhang. ENA has rallied following these updates, recording one of the largest gains in the crypto market today.
Ethena Foundation Buys Out Some Early Investors, ENA Rallies
In a blog post, the Ethena Foundation announced that it has bought out all locked tokens from certain major seed investors who sold any ENA within the last nine months. The Foundation aims to use this to address concerns about early investor monthly unlock overhang.
It revealed that it acquired all of the locked tokens in OTC transactions over the last two weeks from these investors who received more than 0.25% of the total token supply. The ENA token has rallied following the announcement, which would reduce the monthly supply overhang.
ENA is currently trading at around $0.16, up over 14% today, according to TradingView data. The token is also up over 80% in the past week, standing out as one of the major gainers in the crypto market even as Bitcoin rallied above $80,000.
As CoinGape reported, the CME added Ethena to its single-asset cryptocurrency benchmarks earlier this week, serving as another bullish catalyst as the token rallies. However, ENA remains down over 15% year-to-date (YTD).
Other Key Updates For The Ecosystem
The Ethena Foundation also announced that it has reached an agreement with Ethena Labs on a Master Framework Agreement. Under the agreement, IP and ownership of value accrued by the protocol are assigned to the Foundation exclusively and governed by token holders, with no residual cash flow due to equity investors in the Labs entity.
Furthermore, the Foundation noted that the governance proposal for revenue buybacks is now live. The proposal is to implement the fee switch, whereby net revenue accrued across all business lines under the Ethena brand will be used to programmatically buy back the ENA token.
Lastly, the Ethena Foundation announced the removal of the monthly VC unlocks, following an agreement with lead investors to eliminate future overhang by releasing unvested tokens. Meanwhile, all team tokens remain locked according to the original vesting schedules.
For more on crypto trading, check out Best Crypto Tools for Research and Analysis
Be the first to comment