Ethena Foundation Overhauls Token Economy Amid Revenue Slump
Ethena Foundation has announced significant reforms to its token economy, which has led to a 23% surge in ENA price over the past 24 hours.
The reforms include abandoning the monthly VC unlock plan and proposing the use of protocol income to repurchase ENA tokens. Additionally, ENA holders will vote on whether to activate the 'fee switch', which would allocate 95% of Ethena brand business net revenue towards programmatic purchases of ENA when USDe circulation reaches $750 million.
Ethena Labs and the foundation have also reached a principle agreement that would transfer ownership of most Ethena protocol intellectual property and economic benefits to the foundation and its ecosystem, rather than Ethena Labs shareholders. This deal is expected to be publicly disclosed in October.