ENA Soars 10% as Ethena Foundation Tackles Token Selling Pressure

ENA, the native cryptocurrency of the Ethena ecosystem, has surged by 10% in the last 24 hours as the foundation addresses concerns over token selling pressure and economic value distribution.

The Ethena Foundation introduced several measures to alleviate these concerns, including repurchasing locked ENA tokens from seed investors and accelerating the remaining investor unlock schedule. This process aimed to reduce the supply of tokens on the market and mitigate potential selling pressure.

The repurchased tokens account for around 12% of ENA's total supply, with the majority belonging to team members, ecosystem stakeholders, and the Foundation itself. The restructuring is expected to preserve long-term vesting requirements while reducing the immediate impact on token prices.

Additionally, Ethena has introduced a governance proposal to activate and expand its ENA fee switch parameters. This proposal ties protocol revenue allocation to supply-based milestones, ensuring that more tokens are purchased as the ecosystem grows and performs financially.