Ethena Reshapes ENA Tokenomics With Revenue Buybacks

TLDR

• Ethena repurchased locked ENA tokens from several major seed investors to reduce future selling pressure.
• Monthly investor unlock pressure could ease after the Foundation accelerated the remaining investor vesting schedule.
• About 12% of locked and unvested ENA remains, covering team, ecosystem, and Foundation allocations.
• Ethena changed its economic framework so protocol profits and future business value accrue to the Foundation and ecosystem.
• A new ENA fee switch proposal is live, linking token buybacks to growth in USDe circulating supply.
• Up to 95% of net revenue from Ethena’s three main business lines could fund ENA buybacks after the first milestone.

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Ethena has introduced new measures to reduce investor selling pressure and clarify how protocol revenue may support the ENA price. The Ethena Foundation said it repurchased locked ENA tokens from several seed investors and accelerated remaining investor unlocks.

The changes also cover protocol ownership, future cash flows, and a proposed ENA fee switch. Ethena said the structure directs more economic value toward the Foundation, ecosystem, and token holders as USDe supply grows.

ENA Price, Ethena Investor Unlocks Face New Structure

The Foundation said it bought locked ENA through over-the-counter deals during the past two weeks. The transactions involved seed investors who originally received more than 0.25% of ENA’s total supply. Ethena divided those investors based on whether they sold ENA after October 10. It bought all remaining unvested tokens from sellers in that group, apart from one wallet that refused the offer.

Investors who had not sold ENA received an offer to sell locked tokens back at full value. None accepted. Ethena said monthly investor unlocks should no longer affect the market under the revised structure. Team tokens will continue under the original vesting rules. After the transactions, about 12% of locked and unvested ENA remains tied to team, ecosystem, and Foundation allocations.

Ethena Revises Protocol Economic Framework

The Foundation and Ethena Labs also signed a Master Framework Agreement. Under the agreement, Ethena Labs will exclusively license key protocol intellectual property to the Ethena Foundation and its ecosystem.

Ethena said residual profit, economic upside, and proceeds from any future business sale would go to the Foundation and ecosystem. Equity holders in Ethena Labs would not receive residual protocol cash flow or profit. Ethena also released a governance proposal to expand the ENA fee switch. The plan uses USDe supply milestones to decide how much protocol revenue goes toward ENA buybacks.

Once the first milestone is reached, 95% of net revenue from Ethena’s three core business lines would fund ENA buybacks. The remaining 5% would support growth as Ethena targets more than $100 billion in USDe supply within five years. The implementation vote is live, and governance will determine whether the proposal proceeds.

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Source: https://blockonomi.com/ethena-reshapes-ena-tokenomics-with-revenue-buybacks/