The Ethena Foundation opened a vote on a proposal to direct 95% of net protocol revenue into ENA buybacks once USDe's circulating supply hits $7.5 billion. ENA jumped on the news, and the foundation also disclosed it bought back locked tokens from early investors while accelerating the release of remaining investor allocations.
Fee-switch vote targets ENA buybacks
Ethena Foundation put a fee-switch proposal to a vote that would send 95% of the net revenue paid to it from Ethena's core business lines toward ENA buybacks once USDe's circulating supply reaches its first milestone of $7.5 billion. The foundation announced the plan in a Thursday blog post as one of four ecosystem changes.
Tokenholders have until Sept. 2 to cast their votes, and at press time 65 votes representing about 14.4 million ENA in voting power had been cast, all in favor, according to Snapshot data.
ENA rises on the announcement
ENA rose 10.7% over 24 hours and gained 27% during the past week, trading above $0.17 as of 8:11 am UTC on Friday, according to CoinGecko data.
Investor tokens bought back and unlocks accelerated
The foundation also said it bought locked ENA from certain major seed investors who sold some of their holdings during the past nine months. Separately, it agreed with lead investors to release the remaining unvested investor allocations on Oct. 5, replacing the existing monthly unlock schedule, while team tokens stay on their original vesting schedules. The change accelerates the remaining investor unlocks rather than canceling the tokens.
Ethena's synthetic dollar, USDe, ranks as the sixth-largest stablecoin with a $4 billion market capitalization on DefiLlama. In September 2025, M2 Capital, the investment arm of UAE-based M2 Holdings, invested $20 million in ENA to make it its latest strategic holding.
Source: Cointelegraph.com News
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