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 much economic value accrues to ENA holders versus Ethena Labs shareholders, resolving two long-standing concerns.
- Once USDe revenue reaches $7.5 billion, 95% of net income from Ethena-branded businesses will fund ENA buybacks, while holders vote on a "fee switch" creating recurring token demand.
- Trading volume climbed above $1.04 billion, an increase of about 319%, as ENA retained a weekly gain of about 25% and traded near $0.147 on Aug. 27.
- Ethena is pivoting toward institutional lending through a $1 billion facility with FalconX, allowing USDe reserves to back overcollateralized loans and diversify revenue beyond derivative funding rates.
19 Articles
19 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 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 ? …
Ethena Buys Out Locked ENA as Token Jumps 23% to $0.17
Ethena has moved to eliminate a major source of potential ENA selling pressure, buying remaining locked tokens from large seed investors that sold the cryptocurrency during the past nine months as part of a broader restructuring of the protocol’s token economics. The Ethena Foundation announced four changes on August 27 covering early-investor holdings, token and equity alignment, future ENA buybacks and the remaining venture-capital unlock sche…
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