ENA Token Surges 10% as Ethena Foundation Proposes Revenue-Funded Buybacks
The Ethena Foundation announced four key changes to its ecosystem, sending the native ENA token soaring by over 10% in the past 24 hours. The foundation proposed a fee-switch mechanism that would allocate 95% of net revenue from core business lines towards purchasing ENA once the circulating supply of USDe reaches $7.5 billion.
The proposal, which is currently being voted on by tokenholders until September 2, has received overwhelming support with over 65 votes in favor, representing approximately 14.4 million ENA in voting power. The foundation also revealed that it had purchased locked tokens from certain major seed investors who sold some of their holdings during the past nine months.
Ethena's synthetic dollar, USDE, has a market capitalization of over $4 billion and ranks as the sixth-largest stablecoin according to DefiLlama. The conglomerate M2 Capital invested $20 million in ENA last September, making it its latest strategic holding.