Ethena Foundation overhauls ENA tokenomics, ends VC unlocks
6.7 Investments Ethena revamped governance, ended VC unlocks, and shifted protocol value to token holders. ENA buybacks proposed. ENA price rose after the update.
The Ethena Foundation has announced a significant overhaul of its governance and tokenomics structure. To address concerns over early investor unlocks and value distribution, the foundation repurchased locked ENA tokens from key seed investors who had sold within the last nine months, removing these unvested tokens from future circulation. Monthly venture capital unlocks have been discontinued. Now, the remaining investor tokens are set to unlock by October 5, 2026, while team tokens will continue on their original vesting schedule. Additionally, all protocol intellectual property and value accrual have been transferred to the foundation, governed by token holders, eliminating equity investor claims. A new governance proposal aims to allocate protocol revenue to ENA buybacks, which will activate once USDe’s circulating supply hits $7.5 billion. These measures are intended to align incentives, reduce selling pressure, and ensure protocol value benefits ENA holders. Following the news, ENA’s price saw a notable increase.
