TREE NEWS reports: Ethena Foundation announced it bought back locked ENA tokens from major seed investors and canceled all future monthly VC unlocks, removing a major supply overhang. It also proposed a governance plan to use 95% of protocol net income for programmatic ENA buybacks, tying token value to protocol revenue. The news triggered a sharp price surge, with ENA rising to $0.189.
Ethena Foundation Buys Back Seed Tokens, Ends VC Unlocks, Proposes 95% Revenue Buyback
AI take
This move removes a structural supply pressure that has weighed on ENA, shifting the token's economic narrative toward revenue-driven value accrual. The buyback proposal, if approved, would make protocol earnings the primary price driver, a significant departure from typical unlock schedules. The immediate market reaction reflects relief over the eliminated overhang, but the open question is whether sustained buyback execution can offset broader market volatility and maintain confidence in the model.
Generated by AI for reference only.
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