Ethena’s ENA Token Jumps 23% After Major Tokenomics Shake-Up

ENA, the token behind Ethena’s synthetic dollar protocol USDe, surged 23% Thursday to $0.17 after the project’s foundation announced a major overhaul of its token economics. The foundation bought back remaining locked tokens from early investors who had been selling, while ending the monthly VC unlock schedule that had weighed on the price. ENA has doubled in value over roughly a week.

New Buyback Plan Under Vote

Token holders are now voting on a fee-switch proposal that would direct most protocol revenue toward buying back ENA once USDe supply hits set milestones, creating steady demand for the token going forward.

Reviving USDe Growth

The changes follow a sharp drop in USDe supply from its October peak. Ethena has since pursued new revenue sources, including a $1 billion lending facility and partnerships with major financial institutions.