Ethena's native token (ENA) has experienced a significant surge in the market, registering a 23% increase in its price. This movement is a response to a major overhaul of its economic model, which aims to allocate a large portion of the protocol's revenue to token buybacks and curb selling pressure.
The change in Ethena's economic model
The crypto community has reacted with remarkable optimism to the recent announcements from the Ethena Foundation, marking a turning point in the trajectory of its native asset. The new governance proposal suggests redirecting up to 95% of the revenue generated by the protocol towards the repurchase and direct burning of ENA tokens on the open market.
In addition to the revenue allocation, the proposal includes a significant restructuring of the token unlocking schedule for early investors and the development team, considerably reducing short-term downward pressure.
With these structural changes, Ethena seeks to better align the incentives of its token holders with the sustained growth and real economic benefits of the DeFi protocol.
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