Ethena Announces ENA Buyback and Fee Switch for Holders

The Ethena Foundation has introduced four measures to enhance the tokenomics of ENA, aiming to make ENA the primary beneficiary of the ecosystem's revenues. The foundation has repurchased all locked tokens held by investors who recently sold ENA. An agreement has been signed, transferring intellectual property to the foundation, with no cash flow for Labs shareholders. A fee switch has been introduced, allowing a growing share of net revenues to be redirected towards the buyback of ENA, depending on the circulating supply of USDe. The scale starts at 5% at $7.5 billion of USDe, reaching up to 20% at $20 billion. Currently, the supply of USDe is approximately $4.07 billion. The mechanism could generate $52.7 million per year, representing a yield of 3.36% of ENA's market capitalization, estimated at $1.57 billion. Following these announcements, the price of ENA increased by nearly 11% in 24 hours and over 100% in 30 days, reaching about $0.16. The removal of monthly unlocks from VCs, representing approximately $512 million per year until April 2028, is expected to reduce pressure on the token. Additionally, the stablecoin USDe has surpassed $320 million on Robinhood Chain, representing 42% of the total stablecoin supply on the network.

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