Ethena Foundation Proposes Revenue-Funded ENA Buybacks and Accelerates Token Unlocks
Quick Look
- The Ethena Foundation proposed a fee-switch mechanism to use 95% of net revenue for ENA token buybacks once USDe supply hits $7.5 billion, completed a buyout of locked tokens from early investors, and agreed to release remaining unvested allocations on Oct.
- 5, replacing monthly unlocks.
- ENA token rose 10.7% in 24 hours and 27% over the week, trading above $0.17.
AI-generated summary
Why It Matters
Ethena is a synthetic dollar protocol issuing USDe, a stablecoin backed by derivative positions. Its governance token ENA allows holders to vote on protocol parameters. The foundation has previously managed token unlocks for early investors and team members.
The native token of the synthetic dollar protocol Ethena (ENA) registered double-digit gains after the Ethena Foundation unveiled four ecosystem changes, including a proposal for revenue-funded token buybacks and a completed buyout of locked tokens held by some early investors.
The Ethena Foundation opened a vote on a fee-switch proposal under which 95% of the net revenue paid to it from Ethena’s core business lines would be used to purchase ENA once the circulating supply of USDe reaches the first proposed milestone of $7.5 billion, the foundation said in a Thursday blog post.
Tokenholders have until Sept. 2 to cast their votes. At press time, 65 votes representing about 14.4 million ENA in voting power had been cast, all in favor of the fee-switch proposal, according to Snapshot.
The ENA token rose 10.7% over the 24 hours and gained 27% during the past week to trade above $0.17 as of 8:11 am UTC on Friday, according to CoinGecko data.
The foundation also said it had bought locked ENA from certain major seed investors who sold some of their holdings during the past nine months. Separately, it agreed with lead investors to release the remaining unvested investor allocations on Oct. 5, replacing the existing monthly unlock schedule. Team tokens will remain subject to their original vesting schedules.
The change accelerates the remaining investor unlocks rather than canceling the tokens.
Ethena’s synthetic dollar, Ethena USDe (USDE), ranks as the sixth-largest stablecoin with a $4 billion market capitalization on DefiLlama.
In September 2025, M2 Capital, the investment arm of UAE-based M2 Holdings, invested $20 million in ENA to make it its latest strategic holding. The conglomerate previously invested in the Sui Foundation.
What to Watch
AI outlook — possibilities, not facts
The fee-switch proposal will achieve sufficient voter approval by Sept. 2.
Likely · Within days
ENA token price will maintain upward momentum in the short term if the fee-switch passes.
Possible · Within weeks
Open Questions
- What percentage of total ENA supply is held by early investors whose tokens were bought out?
- Will the fee-switch proposal achieve quorum and pass by the Sept. 2 voting deadline?
- How will the accelerated unlock schedule affect long-term token distribution and decentralization goals?
