ENA token rises 10% as Ethena puts revenue buybacks to vote
The ENA token rose about 10% after the Ethena Foundation proposed using 95% of net protocol revenue for token buybacks once USDe supply reaches $7.5 billion, opened a community vote on the plan through Sept. 2, and unveiled a buyout of locked tokens held by major early investors. The move, part of four ecosystem changes unveiled Thursday, also includes buying locked tokens from early investors—linking Ethena's growth more directly to ENA demand and helping push the token up 27% over the past week.
Ethena operates a synthetic-dollar protocol whose native token, ENA, often moves on governance and supply news. The foundation's latest package combines a revenue fee switch, an investor token buyout, and an accelerated unlock schedule—giving markets a clearer picture of how protocol cash flows could support the token.
Key Takeaways
- ENA gained 10.7% over 24 hours and 27% over the past week, trading above $0.17, according to CoinGecko data cited by Cointelegraph.
- The Ethena Foundation proposed directing 95% of net revenue from core business lines to ENA buybacks once USDe circulation hits a $7.5 billion milestone.
- Tokenholders can vote on the fee-switch proposal until Sept. 2; early Snapshot tallies showed 65 votes representing about 14.4 million ENA, all in favor.
- The foundation bought locked ENA from major seed investors and agreed to release remaining unvested investor allocations on Oct. 5 instead of a monthly unlock schedule.
- USDe ranks as the sixth-largest stablecoin with roughly $4 billion in market capitalization on DefiLlama.
Why Did the ENA Token Rise After Ethena's Announcement?
Markets bid up ENA after the Ethena Foundation outlined four ecosystem changes, including revenue-funded buybacks and a completed buyout of locked tokens held by some early investors. The token registered double-digit gains as traders priced in tighter links between protocol revenue and open-market ENA demand.
At press time, ENA traded above $0.17 as of 8:11 a.m. UTC on Friday, per CoinGecko figures reported by Cointelegraph. The rally extended a broader weekly move, with ENA up 27% over seven days.
What Would the Revenue-Funded Buyback Proposal Do?
Under the fee-switch proposal, 95% of net revenue paid to the Ethena Foundation from the protocol's core business lines would be used to purchase ENA on the open market. That mechanism would activate once the circulating supply of Ethena USDe (USDE) reaches the first proposed milestone of $7.5 billion, the foundation said in a Thursday blog post.
USDe currently holds about a $4 billion market capitalization and ranks sixth among stablecoins on DefiLlama. If approved, the fee switch would turn a growing share of protocol economics into recurring buy pressure for ENA rather than leaving that revenue unallocated to tokenholders.
How Are Tokenholders Voting on the Fee Switch?
The Ethena Foundation opened a Snapshot vote on the fee-switch proposal, with tokenholders able to cast ballots until Sept. 2. At press time, 65 votes representing roughly 14.4 million ENA in voting power had been recorded—all in favor of the plan.
Governance votes on revenue allocation often draw attention in DeFi because they can reshape long-term token supply dynamics. For more coverage of token governance and market moves, see our Fintech & Crypto Alerts hub.
What Happens to Early Investor and Team Token Allocations?
Separately from the vote, the foundation said it had purchased locked ENA from certain major seed investors who sold some holdings during the past nine months. It also agreed with lead investors to release the remaining unvested investor allocations on Oct. 5, replacing the existing monthly unlock schedule.
Team tokens will remain subject to their original vesting schedules. The foundation noted the change accelerates the remaining investor unlocks rather than canceling the tokens—meaning supply previously locked on a slower timetable will enter circulation sooner.
Ethena has drawn institutional interest before. In September 2025, M2 Capital, the investment arm of UAE-based M2 Holdings, invested $20 million in ENA as a strategic holding.