Ethena surges as buyback vote, VC unlock overhaul boost token outlook

At the same time, $ENA holders are voting on a “fee switch” that would create a recurring source of demand for the token. Buybacks would scale up as $USDe circulation reaches specified milestones. Once the first threshold ($7.5 billion) is reached, 95% of net revenue from Ethena-branded businesses would go toward programmatic $ENA purchases, with the remaining 5% funding growth.

Ethena Labs and the foundation are also formalizing where the protocol’s economics reside, the post said. Under an agreement in principle, substantially all material intellectual property and economic upside from the Ethena protocol would belong to the foundation and ecosystem, rather than Ethena Labs equity holders. The agreement is expected to be published in October.

Revive $USDe growth

The overhaul comes after a sharp reversal for $USDe, whose supply has fallen below $5 billion from a peak near $15 billion in October during the crypto bull market. $USDe generates returns in part from derivatives funding rates, which dwindled as crypto markets cooled.

Ethena has since been looking for other sources of growth and yield. Last week, it announced a $1 billion facility with FalconX that can channel $USDe backing into overcollateralized institutional loans.

It also inked deals with major institutions: Janus Henderson invested in $ENA in June and is exploring $USDe distribution, while Coinbase COIN$192.49 launched a savings-product with Ethena while it’s venture arm bought $ENA.