Ethena Foundation Unveils Bullish Updates Amidst Community Backing

Ethena Foundation announced four ecosystem updates that analysts say are extremely bullish and long overdue.

The foundation has bought all locked tokens from major seed investors who sold ENA in the last nine months, eliminating a major bearish factor for the token. Additionally, monthly VC overhang has ended, which was a persistent issue since Ethena raised $180M by selling 315 million ENA tokens in 2024.

The foundation has also aligned ENA with the ecosystem, assigning brand and intellectual property (IP) rights to the foundation and governed by token holders. There will be no payouts to private investors in Ethena Labs, which is building the ecosystem products.

In a bid to avoid an Aave-like divisive civil war over IP ownership and revenue, Ethena has taken a different route. The project plans to use generated revenue for a fee switch and an ENA buyback proposal. If the USDe supply crosses $7.5B and annualized revenue hits $450M, 5% of the proceeds will go towards ENA buybacks.

The community has overwhelmingly supported the new plans with 100% voting in favor. The floated proposal is set to end by September 2nd, with no abstain or against votes as of press time.