Ethena's ENA Token Surges 10% Following Revenue-Backed Buyback Proposal
Ethena Foundation has introduced a proposal to purchase tokens from significant early-stage investors while implementing a fee mechanism directing 95% of net protocol revenues toward ENA token buybacks.
Ethena's native cryptocurrency (ENA), powering the synthetic dollar protocol, experienced substantial double-digit price appreciation following an announcement from the Ethena Foundation detailing four significant ecosystem modifications, which included a revenue-backed token buyback plan and the successful acquisition of locked token holdings from several early-stage investors.
According to a Thursday blog post from the foundation, the Ethena Foundation has initiated a voting process on a fee-switch mechanism that would allocate 95% of net revenues generated from Ethena's primary business operations toward purchasing ENA tokens after the USDe circulating supply achieves the initial proposed threshold of $7.5 billion.
Token holders are given until Sept. 2 to submit their votes on the proposal. As of the time of publication, approximately 65 votes accounting for roughly 14.4 million ENA in voting influence had been submitted, with all votes supporting the fee-switch mechanism, based on data from Snapshot.
Based on CoinGecko data, the ENA token experienced a 10.7% increase throughout the 24-hour period and posted a 27% rise over the previous week, trading above the $0.17 mark as of 8:11 am UTC on Friday.
Additionally, the foundation disclosed that it has acquired locked ENA tokens from specific major seed-stage investors who had liquidated portions of their token allocations throughout the preceding nine-month period. In a separate agreement, the foundation reached terms with primary investors to distribute the outstanding unvested investor allocations on Oct. 5, which will replace the current monthly unlock structure. Token allocations designated for team members will continue to follow their original vesting timelines.
This modification expedites the timeline for remaining investor token unlocks instead of eliminating the tokens entirely.
According to DefiLlama statistics, Ethena's synthetic dollar, Ethena USDe (USDE), currently holds the position of sixth-largest stablecoin with a market capitalization totaling $4 billion.
During September 2025, M2 Capital, which serves as the investment division of UAE-based M2 Holdings, committed $20 million toward acquiring ENA to establish it as its most recent strategic asset position. The conglomerate had previously made investments in the Sui Foundation.