Ethena Foundation Seeks to Ease Selling Pressure with Token Buyback Plan

The Ethena Foundation has taken steps to revamp its token economics and governance structure. On August 27, it announced that it had bought out seed investors' locked ENA tokens from those who sold them over the past nine months.

The buyout is part of a four-part overhaul aimed at reducing selling pressure on the token. The Foundation has also assigned the protocol's intellectual property to itself and removed the monthly token-unlock schedule tied to venture investors.

A governance proposal is now live to switch on a fee mechanism that would direct net revenue from Ethena business lines into programmatic buybacks of ENA. This would allocate a share of revenue towards buying back tokens, which could ease selling pressure and return value to token holders rather than early backers.