Ethena surges as buyback vote, VC unlock overhaul boost token outlook
Ethena is restructuring its tokenomics by removing monthly VC unlock schedules and proposing a fee switch that uses protocol revenue for ENA token buybacks. These changes aim to reduce selling pressure and align the protocol's economic value more closely with tokenholders.
Why it matters
The move represents a significant shift in decentralized finance governance, attempting to stabilize token value and incentivize long-term holding amidst market volatility.
The changes take aim at two issues that have dogged ENA: selling pressure from early-investor unlocks and uncertainty over how much of Ethena’s economic value accrues to the token.
The plan removes the monthly VC unlock schedule, proposes using protocol revenue to buy ENA and draws a clearer line between tokenholders and Ethena Labs shareholders.
Already one of crypto’s fastest horses this week, ENA climbed 23% over the past 24 hours to $0.17. The token has doubled in price in a bit more than a week as the broader crypto rally heated up.
The Ethena Foundation said in a post that it bought the remaining locked tokens from certain large seed investors that had sold ENA over the past nine months. It will also accelerate the remaining original investor unlocks, ending the monthly release of VC tokens. Team tokens remain subject to their existing vesting schedules.
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