ENA Surges as Ethena Proposes Revenue-Funded Buybacks

Ethena's native token ENA has seen significant gains following a governance update and proposal to allocate revenue towards buybacks. The Ethena Foundation announced a package of changes aimed at reworking how protocol revenue is handled, including a vote on a fee-switch mechanism that would direct a large share of net revenue towards ENA purchases once the synthetic dollar supply (USDe) reaches $7.5 billion.

The foundation opened a governance vote on the proposal tied to USDe reaching the milestone. Under this plan, 95% of the foundation's net revenue from Ethena's core business lines would be allocated towards buying ENA after the threshold is met. Tokenholders have until September 2 to cast their votes, with all votes recorded so far supporting the proposal.

The development has seen ENA surge in value, with CoinGecko data showing a 10.7% increase over the past 24 hours and a 27% gain over the week. The token is currently trading above $0.17. While the vote's outcome remains uncertain, the governance framing itself can impact traders' views on the protocol's economics and supply dynamics.