Ethena approves revenue-based ENA token buybacks

The Ethena Foundation has approved a “fee conversion” proposal with 100% support, enabling the protocol to use generated revenues for programmatic ENA token buybacks. This decision follows broader economic changes announced in late August, which included the cancellation of future monthly token unlocks for venture capital investors and increased alignment between the ENA token and company equity.

Following the governance vote, the ENA token saw a price increase of approximately 15%, reaching $0.172. While the price surge reflects growing interest, market data shows mixed signals regarding protocol health. Total Value Locked (TVL) in the protocol increased by roughly $160 million to reach $4.719 billion, yet recent revenue has remained low, with DeFiLlama reporting only $56.91 generated in the last 24 hours.

Despite the recent price rally, long-term selling pressure has been notable. Over the last two weeks, the seven-day netflow recorded a negative reading of -$4.82 million, though recent 24-hour data indicates a shift toward buying interest with a net outflow of $27.41 million.