Ethena Proposes Up to 95% Revenue Allocation for ENA Buybacks

On August 27, Ethena Foundation announced plans to modify the tokenomics of ENA by implementing a mechanism that directs up to 95% of protocol revenue towards buying back ENA tokens. This initiative aims to counteract selling pressure and enhance the token's value in relation to the protocol. The trigger points for buybacks are set at USDe supply levels of approximately $7.5 billion and $20 billion, with buybacks activated once these thresholds are crossed, leaving 5% of revenue for protocol development. Currently, the USDe supply is around $4.07 billion, below the first threshold.

Additionally, Ethena has repurchased locked ENA tokens from early investors and plans to halt further unlockings starting October 5. These measures are intended to stabilize the token's market and support its valuation by reducing sell pressure and aligning token value with protocol growth.