Ethena Foundation has unveiled a major overhaul of its tokenomics, sending ENA up 23% over the past 24 hours to $0.17. The changes include scrapping the monthly VC unlock schedule and proposing the use of protocol revenue to buy back ENA. ENA holders are now voting on a fee switch proposal tied to USDe supply. If USDe circulation reaches $7.5 billion, 95% of net revenue from Ethena-branded business would be used for programmatic ENA purchases, with the remaining 5% allocated to growth. Separately, Ethena Labs and the foundation have reached an agreement in principle to assign most of the protocol’s intellectual property and economic rights to the foundation and ecosystem rather than Ethena Labs equity holders, with a formal announcement expected in October. The move comes as USDe supply has fallen from a peak of nearly $15 billion in October to below $5 billion, while funding-rate-driven yield has narrowed alongside cooler crypto market conditions. Ethena has also been lining up new growth channels through a $1 billion FalconX facility, Janus Henderson’s June investment in ENA, and a savings product launched with Coinbase.
Ethena Foundation announced a major tokenomics overhaul, and ENA rose 23% in 24 hours to $0.17.
The changes include ending the monthly VC unlock schedule and proposing to use protocol revenue to buy back ENA. ENA holders are currently voting on a “fee switch.” Under the proposal, once USDe circulation reaches $7.5 billion, 95% of net revenue from Ethena-branded business would go to programmatic ENA purchases, while the remaining 5% would be used for growth.
IP and economic rights set to move to the foundation
Ethena Labs and the foundation have also reached an agreement in principle to assign most of the Ethena protocol’s intellectual property and economic benefits to the foundation and the ecosystem, rather than to Ethena Labs equity holders. That agreement is expected to be announced in October.
Reform arrives as USDe supply declines
The overhaul comes as USDe supply has dropped from a peak of nearly $15 billion in October to below $5 billion. Part of USDe’s yield depends on derivatives funding rates, which have narrowed as the crypto market has cooled.
New growth channels
Seeking additional sources of growth, Ethena said last week that it had reached a $1 billion facility with FalconX, allowing USDe collateral to be used in overcollateralized institutional lending.
Janus Henderson invested in ENA in June and has been exploring USDe distribution. Coinbase has also launched a savings product in partnership with Ethena.
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