The Ethena Foundation has proposed a major overhaul of its token economics that would direct 95% of net revenue toward ENA buybacks once USDe supply reaches $7.5 billion. The proposal is now subject to an ENA tokenholder governance vote.
The plan would connect ENA value accrual more directly to growth across Ethena’s business operations. The Foundation says the framework covers revenue from USDe savings, white-label stablecoins and its upcoming Ethena product.
The proposal comes as Ethena seeks to rebuild USDe adoption after the stablecoin’s supply declined sharply from its 2025 peak.
Buybacks tied to USDe growth
Under the proposed fee switch, the first buyback threshold sits at $7.5 billion of circulating USDe. At that level, 95% of net revenue received by the Ethena Foundation would fund programmatic ENA purchases.
The remaining 5% would support ecosystem growth. Furthermore, the proposed mechanism increases the revenue allocation at higher USDe supply milestones.
The broader schedule includes:
- 5% of protocol revenue at $7.5 billion of USDe supply
- 10% at $10 billion
- 15% at $15 billion
- 20% at $20 billion
The fee switch analysis indicates that the current proposal would not trigger immediately because USDe supply remains below the first threshold.
Governance approval remains critical
The Foundation has opened the proposal for governance approval, with voting scheduled to run through September 2. If approved, buybacks would begin once the relevant USDe supply milestones are reached.
The proposal also addresses ENA’s token supply dynamics. Ethena has moved to buy locked ENA from certain early investors and plans to end the existing monthly investor unlock structure.
The changes could give ENA holders a more direct link to protocol growth. However, the effectiveness of the buyback program will depend on USDe expansion and the revenue generated by Ethena’s businesses.
For now, the $7.5 billion threshold remains the key milestone. Ethena would need to grow USDe substantially from current levels before the proposed revenue-funded ENA buyback mechanism becomes active.
