Ethena Foundation Proposes Ending Monthly Investor Unlocks, 95% of Net Income to Be Used for ENA Buybacks After USDe Milestone

August 30, according to Crowdfund Insider, the Ethena Foundation announced a series of adjustments to reduce sell-side pressure from early investor unlocks. The Foundation has repurchased a portion of the remaining locked ENA held by major seed round investors through over-the-counter transactions and has agreed with key investors to terminate the remaining vesting arrangements early. Starting October 5, no investor tokens will remain in lock-up, while team tokens will maintain their original lock-up and vesting terms.

In addition, Ethena Labs and the Foundation have reached an agreement in principle on the master framework agreement, proposing to assign the protocol's key intellectual property and related economic benefits to the Foundation and the token governance ecosystem. The Foundation has also initiated a fee switch governance proposal, under which the ENA buyback ratio will increase as USDe circulation reaches corresponding milestones; after the first milestone is reached, 95% of the Foundation's net income from its three core businesses—USDe savings, white-label stablecoins, and Ethena X—will be used for programmatic ENA buybacks, with 5% allocated to business growth.

[TechFlow]