Ethena Proposes Sweeping Changes to Token Economics
Ethena Foundation recently proposed significant changes to its ENA token economics in response to two major issues: selling pressure from early investor unlocks and uncertainty over how much value flows to token holders.
The foundation decided to allocate 95% of net revenue for ENA buybacks, a move aimed at reducing selling pressure and increasing the token's price. Additionally, Ethena bought out seed investors' locked tokens, giving them their original purchase price with no discount. Only one investor declined the offer.
The foundation also agreed to end monthly VC unlocks starting October 5, which had been a source of consistent selling pressure. Around 12% of ENA supply will remain locked and unvested, consisting only of team, ecosystem, and foundation holdings.