Ethena Foundation restructures ENA tokenomics to direct protocol value accrual fully to token holders via buybacks, while eliminating future equity holder cash flow.
Regulation & Gov ·
Ethena Foundation has restructured ENA tokenomics through a Master Framework Agreement with Ethena Labs, assigning protocol intellectual property and value accrual exclusively to the Foundation and its token holders while eliminating future cash flow rights for equity investors in Labs. The Foundation also executed a buyout of locked tokens from seed investors who sold ENA within the prior nine months, and secured agreement from lead investors to release unvested tokens and cancel future monthly VC unlock schedules.
The restructuring introduces a revenue buyback mechanism whereby net fees accrued across Ethena business lines will be used to programmatically repurchase ENA tokens. A governance proposal for the fee switch implementation is now live and has already received Risk Committee approval, directing all protocol value to token holders rather than outside equity holders.
Execution of the buyback program depends on USDe supply recovery. The mechanism is contingent on the stablecoin growing from its current level below $5B to $7.5B, meaning token buyback velocity remains tied to protocol adoption and user growth rather than immediate execution.