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Ethena ENA jumps 23% after foundation votes to shift token buybacks
The Ethena Foundation is ending monthly VC unlocks, and ENA holders will vote on a fee switch that would send 95% of net protocol revenue to buybacks once USDe hits a $7.5 billion threshold.
Ethena’s native token ENA surged 23% on Thursday, helped by an overhaul to the token’s economics that aims to reduce selling pressure from early investor unlocks and create a clearer link between Ethena protocol revenue and token buybacks, CoinDesk reported.
The Ethena Foundation said it will end the monthly VC unlock schedule by accelerating remaining original investor unlocks, and it bought remaining locked tokens from certain large seed investors that had sold ENA over the past nine months, while team tokens stay on existing vesting schedules.
At the same time, ENA holders are voting on a “fee switch” that would direct 95% of net protocol revenue to programmatic ENA purchases, with the remaining 5% funding growth, scaling buybacks as USDe circulation reaches specified milestones.
CoinDesk also reported that, under an agreement in principle, substantially all material intellectual property and economic upside from the Ethena protocol would belong to the foundation and ecosystem rather than Ethena Labs shareholders, and that the first buyback threshold is set at $7.5 billion.