The Ethena ecosystem is entering a phase of radical restructuring. The Ethena Foundation has put forward a proposal for voting that fundamentally changes the revenue distribution model: almost all net proceeds from the protocol's products will be directed toward a programmatic buyback of the governance token ENA. This is not just an adjustment — it is an attempt to reset the economics of an asset that has lost more than 80% of its value since its peak.
Re-engineering the fee model
The essence of the initiative is a "fee switch." Instead of distributing income among sUSDe holders and partner programs, as was done previously, all flows will be consolidated and directed toward market purchases of ENA. In essence, the protocol becomes an aggressive buyer of its own token, which should create sustainable demand and reduce the circulating supply. The risk committee has already approved the initiative, voting has been launched on Snapshot, but the exact timeline and guarantees of adoption have not yet been disclosed.
Value consolidation and a new governance vector
In parallel, Ethena Labs and the Ethena Foundation have entered into a Master Framework Agreement, under which the protocol's intellectual property and rights to the value it generates transfer exclusively to the foundation. In the future, these assets will be managed by ENA holders through decentralized governance mechanisms. A key nuance: under the terms of the agreement, venture investors in Ethena Labs lose residual rights to cash flows, which shifts the balance of power in the ecosystem.
New tokenomics: investors waive unlocks
The most significant part of the update concerns the unlock schedule. The foundation and the largest venture investors have agreed to cancel future monthly vestings. This involves 25% of the fixed supply of ENA — 3.75 billion coins that were originally subject to a one-year cliff followed by a three-year distribution. Now, unlocked tokens belonging to the consenting investors are removed from the schedule, although the team's assets will continue to be released according to the original timeline.
In addition, the Foundation has announced the buyback of remaining locked ENA from a number of early investors who had been selling tokens over the past nine months. The details of the deal are not disclosed, but this is another step toward reducing future market pressure.
Market reaction and my conclusions
The market responded positively to the news: over the course of a day, the price of ENA rose by nearly 12%, reaching $0.16. For comparison, in April 2024, the token was trading at a peak of $1.5. The market capitalization stands at $1.54 billion, and the total value locked in Ethena is $4.5 billion, of which ~$4 billion is accounted for by USDe.
Let me remind you that in August 2025, USDe entered the top three largest stablecoins, but within three months its supply collapsed by more than 50% due to falling yields. This shows how fragile the economics of synthetic dollars can be.
My expert assessment: these measures look timely but carry a double risk. On the one hand, a buyback funded by revenue creates a price support mechanism; on the other, the concentration of control in the hands of the foundation could alienate decentralization advocates. The question is whether ENA can restore investor confidence after such a deep correction, or whether this is merely a temporary measure before a more extensive restructuring.