Ethena Foundation Nabs Locked Tokens from Early Investors, ENA Sees 14% Price Surge

The Ethena Foundation has made significant updates to address concerns about early investor monthly unlock overhang. In an effort to alleviate this issue, the Foundation bought out locked tokens from certain major seed investors who sold ENA within the last nine months.

These OTC transactions took place over the past two weeks and targeted investors who received more than 0.25% of the total token supply. By acquiring these locked tokens, the Ethena Foundation aims to reduce the monthly supply overhang, which had been a point of contention for some time.

The move appears to have had a positive impact on ENA's price, with the token currently trading at around $0.16, up over 14% today according to TradingView data. This significant rally comes as Bitcoin reached new heights above $80,000 and ENA remains one of the major gainers in the crypto market.

The Ethena Foundation also announced an agreement with Ethena Labs on a Master Framework Agreement, which assigns IP and ownership of value accrued by the protocol to the Foundation exclusively. Additionally, the governance proposal for revenue buybacks is now live, with plans to implement fee switches that will programmatically buy back ENA tokens using net revenue.