Ethena Buys Out Seed Investors Who Sold ENA, but Buybacks Need USDe to Nearly Double
Ethena said the overhaul will redirect protocol revenue into ENA purchases and formalize economics for the foundation and ecosystem.
- On Thursday, The Ethena Foundation announced a major overhaul of ENA token economics, eliminating monthly venture capital unlocks and proposing programmatic buybacks funded by protocol revenue.
- These changes address selling pressure from early-investor unlocks and clarify how economic value accrues to ENA holders versus Ethena Labs shareholders, resolving longstanding uncertainty.
- Once USDe supply reaches $7.5 billion, 95% of net revenue from Ethena-branded businesses will fund ENA buybacks, while holders vote on a "fee switch" creating recurring token demand.
- ENA traded near $0.147 on Aug. 27, retaining a weekly gain of about 25%, as daily trading volume surged above $1.04 billion, representing a 319% increase.
- Ethena is diversifying revenue beyond derivative funding rates through a $1 billion facility with FalconX, enabling USDe reserves to back overcollateralized institutional loans.
20 Articles
20 Articles
Ethena Buys Out Seed Investors Who Sold ENA, but Buybacks Need USDe to Nearly Double
The Ethena Foundation bought out the locked ENA held by early investors who had been selling it and put a fee switch funding ENA buybacks to a tokenholder vote on Thursday, addressing what Ethena itself named as the two standing doubts about the project. ENA rose about 16% in the hours after the announcement, to around $0.17, extending a weeklong rally that had already lifted the token about 70%. The purchases ran over the counter across the pas…
Ethena unveils four updates as ENA reaches yearly high - The Blockopedia
The Ethena Foundation has announced four updates, and the market seems to like them. ENA jumped to a yearly high shortly after the news broke. Four updates, one bigger shift First, the Foundation said it bought all locked tokens from some major seed investors who had sold ENA over the last nine months. That removes […] The post Ethena unveils four updates as ENA reaches yearly high appeared first on The Blockopedia.
Ethena is reviewing in depth the tokenomics of the ENA with four measures designed to better align the value of the token with the growth of the protocol. Fee switch, buybacks of the ENA and end of the monthly unlocks of investors: the foundation wants to reduce the sales pressure and make the holders of the ENA the main beneficiaries of the income of the ecosystem. The article Ethena will redistribute its revenues to the holders of its token ? …
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