Ethena to accelerate ENA token unlock and end USDe incentives

Ethena is implementing several major structural changes to its protocol, including the acceleration of investor token unlocks and the cessation of USDe growth incentives. On October 5, approximately 1.41 billion ENA, representing about 14% of the circulating supply, will be unlocked in a single event. This move accelerates the original release schedule, which was intended to distribute tokens monthly through March 2028.

To manage this transition, the Ethena Foundation offered to buy out locked positions from large seed investors who held more than 0.25% of the total supply. Most of these habitual sellers accepted the offer, which aims to mitigate potential market impact.

Additionally, Ethena is ending all token incentives and inflation tied to USDe growth by the end of September. This marks the conclusion of the protocol's airdrop seasons. As part of a shift in its funding strategy, Ethena is expanding its yield strategy to include tokenized U.S. stocks. The protocol has begun using Binance’s tokenized U.S. stocks as collateral and hedging exposure through Binance stock perpetual contracts.