Unanimous Vote Passes ENA Buyback Proposal, Major Tokenomics Upgrade Underway

A pivotal governance proposal concerning fee conversion within the Ethena ecosystem has received resounding community approval, according to the latest updates. The proposal aims to establish a sustainable mechanism for supporting token value.

The Core Mechanism: Programmatic Buybacks Fueled by Net Income

The proposal outlines a plan for the Ethena Foundation to utilize the net income generated from all its business lines to programmatically repurchase ENA tokens on the open market via smart contracts. This is designed as a long-term, automatically executed treasury policy, not a one-off event.

The buyback plan will be activated in phases:

  • Trigger Condition: The first key milestone is set when the total supply of the synthetic dollar USDe reaches $7.5 billion. As of this report, the USDe supply stands at approximately $4.06 billion.
  • Execution Ratio: Upon hitting the threshold, 95% of the net income from all business lines will be allocated to ENA buybacks. The remaining 5% may be reserved for ecosystem development or other purposes.

Community Vote Outcome and Market Response

The proposal entered voting on August 27 and concluded on September 2. The results were decisive:

  • It garnered over 14 million affirmative votes, achieving a 100% approval rate.
  • The minimum required quorum for passage was only 5 million votes, meaning support far exceeded the necessary threshold, demonstrating strong community consensus.

The market responded swiftly and positively. Bolstered by the proposal news and its overwhelming passage, the price of ENA saw a notable increase, rising by 25% within 24 hours to a high of $0.89. This surge reflects investor confidence in this upgrade to the token economic model.

This move is widely seen as a significant step in aligning the project's operational success with the interests of token holders. By directly channeling protocol revenue back into token repurchases, it aims to support ENA's scarcity and value over the long term.