Ethena proposes 95% revenue allocation to ENA buybacks

Ethena has proposed directing 95% of net revenue from its branded businesses toward ENA buybacks once USDe supply reaches $7.5 billion, as the protocol also moves to end monthly investor unlocks and separate ecosystem economics from Ethena Labs equity. Summary Ethena has proposed using 95% of net revenue for ENA purchases once USDe supply reaches the first $7.5 billion threshold. The Ethena Foundation has bought locked ENA from some seed investors and plans to accelerate the remaining original investor unlocks. ENA rose about 23% over 24 hours to $0.17 and has roughly doubled in a little more than a week. USDe supply remains below $5 billion after falling from a peak near $15 billion in October. Ethena has expanded into institutional credit and distribution deals as it looks for revenue sources beyond crypto funding rates. According to the Ethena Foundation, the proposed changes are designed to address two long-running issues around ENA: recurring supply from early investor unlocks and uncertainty over how the protocol’s economic value reaches token holders. I was recently having a conversation with a group of veteran investors about how there must be an underlying social substrate...