Ethena's Buyback Plan Hits Snag: USDe Supply Needs to Grow by 50%

Ethena Foundation's plan to route 95% of net protocol revenue into ENA buybacks has a major hurdle. The first milestone, which requires USDe supply to reach $7.5 billion, is currently out of reach with the current supply below $5 billion. This means that USDe needs to grow by roughly 50% before any buyback can occur.

The plan also includes ending future monthly investor unlocks, which would immediately affect the market. However, this part of the proposal is not conditional and will take effect regardless of market conditions.

ENA's price has risen 10.4% to $0.1677, making it the strongest large mover on the board. The token's revenue multiple is approximately 1.2 times annualized revenue, which is still among the lowest readings measured for any token with real revenue.