Ethena’s native ENA token surged more than 10% after the Ethena Foundation announced a series of changes to the token ecosystem, including a governance proposal that would direct a large share of protocol revenue toward ENA buybacks.
Under the proposal, 95% of net revenue received by the Ethena Foundation from the protocol’s core businesses would be used to purchase ENA once USDe reaches a circulating-supply milestone of $7.5 billion.
Ethena Tokenholders Vote on Buyback Plan
The fee-switch proposal is now being decided through governance, with voting scheduled to remain open until Sept. 2.
At the time of reporting, 65 votes representing approximately 14.4 million ENA in voting power had been recorded, with all votes supporting the proposal.
If approved and the required USDe supply threshold is reached, the mechanism would create a direct link between Ethena’s protocol revenue and demand for ENA by using earnings to purchase the token from the market.
ENA Extends Weekly Gains
The proposal triggered a strong move in ENA.
The token climbed approximately 10.7% over 24 hours and was up around 27% over the previous seven days, trading above $0.17 at the time of reporting.
The rally came alongside several changes announced by the Ethena Foundation concerning investor holdings and token distribution.
Ethena Restructures Early Investor Unlocks
The foundation said it had purchased locked ENA from certain major seed investors who had sold portions of their holdings during the previous nine months.
Ethena also reached an agreement with lead investors concerning their remaining unvested allocations. Instead of continuing with the existing monthly release schedule, those tokens are scheduled to be released on Oct. 5.
Importantly, the change does not eliminate the remaining investor allocation. It replaces the previous monthly unlocking structure with a single scheduled release.
Team-held ENA remains subject to the original vesting arrangements.
USDe Remains a Major Synthetic Dollar
Ethena’s synthetic dollar, USDe, has continued to establish itself as a significant player in the stablecoin market.
According to the figures cited, USDe has a market capitalization of roughly $4 billion, placing it among the largest stablecoins globally.
The proposed buyback mechanism would become active only after USDe reaches the initial $7.5 billion supply milestone, making future USDe growth an important factor in the implementation of the plan.
Buybacks Could Change ENA’s Token Economics
The proposed fee switch represents a potentially important shift in how Ethena’s protocol economics connect with its governance token.
Rather than protocol revenue simply accumulating within the broader ecosystem, the proposal would use the majority of that revenue to systematically purchase ENA.
If adopted, the structure could provide sustained market demand for ENA as Ethena’s underlying businesses expand. However, the mechanism remains dependent on governance approval and the protocol reaching the specified USDe supply threshold.
Ethena has also attracted strategic investment. In September 2025, M2 Capital, the investment arm of UAE-based M2 Holdings, invested $20 million in ENA, adding the token to its strategic holdings.
With the governance vote now underway, investors are watching whether Ethena can turn growing protocol activity into a recurring source of demand for ENA.
