ENA Token Surges 23% as Ethena Foundation Unveils Changes

Ethena's ENA token surged by 23% after the foundation announced changes aimed at reducing selling pressure and increasing demand.

The plan includes ending monthly token unlocks for venture capital investors, potentially using protocol revenue to buy ENA, and buying remaining locked tokens from seed investors who sold ENA over the past nine months.

ENA reached $0.17, more than doubling in just over a week. The foundation also plans to accelerate the release of tokens held by original investors, while team tokens will keep their existing vesting schedules.

Holders of ENA are voting on a fee switch tied to growth in USDe, Ethena's dollar-pegged stablecoin. If USDe circulation reaches $7.5 billion, 95% of net revenue from Ethena-branded businesses would fund ENA purchases, with the remaining 5% supporting growth.

Ethena has continued to add institutional partners as it works to grow the stablecoin, including FalconX's $1 billion facility for institutional loans and Janus Henderson's investment in ENA. BlackRock also added USDe to its Aladdin platform.