ENA Token Surges Amid Ethena's Major Tokenomics Overhaul

Ethena's ENA token is experiencing a significant surge in value due to a major overhaul of its tokenomics. The market has repriced ENA after several key factors were announced, including a new 'fee switch' proposal that directs 95% of Ethena's net revenue into ENA buybacks once USDe supply reaches defined milestones.

The fee switch proposal allocates the remaining 5% for ecosystem growth. A governance vote on this proposal is live on Snapshot, with all votes reported as in favor so far. The vote window runs until early September.

The Ethena Foundation has also bought out early investors and ended monthly VC unlocks, reducing perceived future sell pressure while whales and prominent backers accumulate and stake large ENA positions.

Recent elevated volumes, overbought technicals, and whale staking flows on X have amplified a multi-day rally into a sharp 4-hour move. The market is digesting a cleaner forward supply path for ENA, with the Ethena Foundation holding around 20% of the total supply under its own lockup.