Ethena Proposes 95% Revenue Allocation for ENA Buybacks

Key Facts

1Ethena proposed directing 95% of net revenue toward ENA buybacks once USDe supply reaches $7.5 billion.

2The proposal includes ending monthly investor token unlocks and separating ecosystem economics from Ethena Labs equity.

In a move aimed at enhancing token holder value and refining tokenomic structures, the Ethena Foundation has proposed allocating 95% of its net business revenue toward ENA buybacks. The activation of this proposal is contingent on the USDe stablecoin supply reaching a $7.5 billion milestone, reflecting a strategy to link protocol growth directly to token purchasing power. Additionally, the proposal includes ending monthly investor token unlocks and separating ecosystem economics from Ethena Labs equity to mitigate future sell pressure.

These developments come as ENA reacted sharply to the announcement, rising approximately 23% over 24 hours to around $0.17 according to reports. The proposal marks a significant shift from previous periods, as USDe supply has currently fallen below $5 billion from a peak near $15 billion in October. Per market data, the proposed program seeks to replicate previous buyback successes where significant allocations were made as protocol revenue and supply climbed during expansionary phases.

Looking ahead, traders are monitoring USDe supply levels as the primary catalyst for the commencement of programmatic buybacks. With specific price data unavailable as of the August 27, 2026 close, market focus remains on the protocol's liquidity recovery. Furthermore, the upcoming economic calendar shows no immediate crypto-specific catalysts, leaving the narrative driven by internal governance developments within the Ethena ecosystem.