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Ethena Foundation proposes fee switch tied to ENA token buybacks

The foundation said it bought all locked ENA tokens from certain major seed investors via over-the-counter deals over the past two weeks, while also proposing to use 95.0% of net revenue for buybacks after a USDe supply milestone.

Reported · Written up by our desk · Market Structure

Ethena Foundation said it outlined four ecosystem changes for ENA, including buying locked ENA tokens from certain seed investors and ending future monthly investor unlocks, as it looks to address concerns about unlock schedules and where protocol value goes, according to The Block.

The foundation said the purchases were completed through over-the-counter transactions during the past two weeks. It considered seed investors originally allocated more than 0.25% of ENA’s total supply, splitting them into those that sold at least one token since the market peaked on Oct. 10, 2025, and those that did not.

For investors that had not sold, Ethena offered the option to sell their locked tokens at their original purchase price without a discount, and none accepted. Ethena said it bought all unvested tokens from investors who sold during the period, except for one wallet that declined, and that these investors no longer hold unvested tokens that could be sold later.

Separately, Ethena said it plans to assign protocol IP and economic value to the foundation and ecosystem. It also proposed a fee switch for ENA token buybacks, using 95.0% of net revenue for buybacks after a USDe supply milestone is reached, The Block reported, adding that it did not disclose the investors, token amounts, or transaction value.

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