Ethena Foundation ENA token restructuring

The Ethena Foundation has implemented several structural changes to its tokenomics and revenue models. Following a governance vote with 100% support, the protocol approved a “fee conversion” proposal to use generated revenues for programmatic ENA token buybacks. This decision coincided with a period of economic shifts, including the cancellation of future monthly token unlocks for venture capital investors.

Further restructuring involved buying out early venture capital investors to eliminate recurring monthly sell pressure. Under this new arrangement, all remaining investor-allocated ENA tokens are scheduled for a single unlock on October 2, 2026, replacing the previous staggered vesting process. While investor tokens are consolidated, team tokens remain on their original lock-up schedule.

Governance has also backed a fee-switch mechanism where 95 percent of net revenue will be routed into ENA buybacks once the USDe supply reaches $7.5 billion. Additionally, the protocol launched Ethena Pay in beta on the Avalanche network, offering yield and cashback tiers linked to locked ENA holdings.