The Ethena Foundation announced a major governance overhaul with four components: buying out early-stage investors, formalizing agreements on token and equity rights, approving revenue-driven buybacks, and eliminating future venture capital token unlocks. ENA has a maximum supply of 15 billion tokens, with 3.75 billion (25 percent) allocated to investors under a one-year cliff vesting schedule after March 2024. By buying out these investors and canceling future unlocks, the foundation removes potential selling pressure from the market. The protocol generates revenue through its delta-neutral strategy, holding spot crypto positions while shorting equivalent futures to capture the funding rate spread. The durability of the buyback program will depend on the protocol’s ability to sustain revenue, particularly if funding rates turn negative or USDe demand declines.
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