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.