Ethena Proposes 95% Revenue for ENA Buybacks in Tokenomics Overhaul

The Ethena Foundation has launched a sweeping overhaul of its tokenomics and governance structure, centered on a new proposal to direct the vast majority of protocol revenue toward buying back its ENA token. The announcement, made on August 27, 2026, triggered a sharp rally in ENA's price and addresses long-standing concerns about investor sell pressure and the link between protocol value and token holders.

At the core of the changes is a governance proposal, now open for a community vote, that would activate a "fee switch." Under this mechanism, once the circulating supply of Ethena's synthetic dollar, USDe, reaches a threshold of 7.5 billion, 95% of net revenue generated by Ethena-branded businesses would be used for programmatic purchases of ENA on the open market. The remaining 5% would be retained to fund ecosystem growth. The buyback share would increase as USDe supply reaches further milestones. The proposal has already received approval from Ethena's Risk Committee.

The Foundation simultaneously announced it had completed the buyout of all locked tokens from certain major seed investors who had sold ENA over the past nine months. This move, executed through...