Ethena Overhauls Tokenomics with Four Key Changes and Revenue-Funded Buybacks

Ethena has announced four key changes to its tokenomics and a revenue-funded buyback proposal, which is now live for governance approval.

The changes aim to address investor selling pressure, protocol value capture, and recurring unlocks. The Foundation has also completed a buyout of locked ENA tokens from major seed investors, reducing uncertainty around investor-related supply and improving visibility over upcoming token circulation.

The Master Framework Agreement between Ethena Foundation and Ethena Labs covers protocol intellectual property and value accrued by the business, with those assets belonging exclusively to the Foundation and governed by ENA holders. The arrangement strengthens the connection between governance and economic value, but its practical impact depends on implementation and revenue generated.

The proposed revenue-funded buyback would use net revenue generated across businesses under the ENA brand to programmatically buy back ENA tokens, creating a direct link between business performance and recurring ENA demand. If passed, it could offset some of the supply pressure created by investor allocations and scheduled unlocks.