Ethena’s proposed new fee switch would tie ENA buybacks to the 14-day average supply of USDe, with revenue extraction increasing at supply thresholds of $7.5 billion, $10 billion, $15 billion, and $20 billion. The plan would redirect part of the revenue currently allocated to sUSDe staking, partners, and Aave leverage activity toward ENA buybacks.
Backtesting cited by Messari researcher anastasiia showed that when the switch was active, annualized buybacks would have totaled about $52.7 million, equal to 3.36% of ENA’s market capitalization at the referenced price. The analysis also found that on roughly 9.3% of activation days, sUSDe yield would have fallen below sUSDS.
The proposal follows a broader set of ecosystem changes announced by the Ethena Foundation, including an ENA buyback governance proposal and the cancellation of monthly VC unlocks.
Ethena Proposes Tiered ENA Buybacks Triggered by USDe Supply Growth
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