Ethena Foundation Rolls Out Four Key Changes to the Ecosystem

Ethena Foundation said in an official statement on Aug. 27 that it is implementing four major changes across the Ethena ecosystem, including buying back locked tokens from early backers, tightening the link between ENA's value and the project's equity value, advancing a governance plan to use revenue for ENA repurchases, and ending monthly vesting for future VC allocations. The foundation said it has already repurchased all locked ENA tokens held by certain core seed-round investors who had sold ENA over the past nine months. Ethena Foundation also signed a Master Framework Agreement with Ethena Labs. Under the arrangement, all intellectual property and value created will be owned exclusively by the foundation and governed by ENA holders. Equity investors in Labs will no longer receive residual cash flows. On governance, the Risk Committee has approved moving forward with a proposal to use income to buy back ENA. If implemented, net income across all Ethena business lines will be used for programmatic ENA buybacks. Separately, the foundation said it has reached an agreement with major investors to remove future sell pressure associated with monthly VC vesting by releasing unvested tokens. Team tokens will remain locked under the original vesting schedule.