Ethena Foundation has proposed a mechanism for automated ENA buybacks funded by 95% of the protocol’s net revenue, but its activation depends on reaching the $7.5 billion circulating supply threshold for USDe, its synthetic dollar. Current USDe supply sits between $4 and $4.6 billion, requiring approximately 85% growth to hit this target. ENA surged between 16 and 23% intraday to approximately $0.17, building on a broader rally that saw the token climb more than 70% over the preceding week. The Foundation estimates annualized buybacks of approximately $22.5 million at this threshold, assuming a 6% APY on the protocol’s underlying positions. The governance vote concludes September 2.
Source: Read the original article
