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 article provides a factual account of the protocol's strategic changes and market performance without taking a stance on the investment quality.
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