Ethena Foundation Overhauls Ecosystem to Boost ENA Price

The Ethena Foundation has announced a significant overhaul of its ecosystem, including the purchase of locked tokens from major seed investors. This move aims to remove selling pressure on the ENA governance token and address the challenge of investor tokens being subject to lockups.

In a detailed blog post, the Foundation outlined four key changes: buying out locked tokens, ending future overhang associated with monthly VC unlocks, assigning IP and ownership of value accrued by the protocol exclusively to the Foundation, and routing 95% of net revenue into ENA buybacks.

The Foundation has agreed with lead investors to end future overhang by releasing unvested tokens, but team locks remain in place tied to vesting schedules. The overhaul comes after a year of institutional deals, including partnerships with Coinbase Ventures and FalconX.