TL;DR
- Fee Switch Milestone: Ethena has officially met the technical parameters required to activate its ENA fee switch, setting the stage for a governance vote that could convert ENA into a yield-bearing token.
- Binance Partnership: USDe is now fully integrated across Binance’s platform, with Ethena projecting up to $4 billion in asset penetration following months of due diligence.
- Capital Strategy: Ethena’s subsidiary raised $895 million in total and launched a $310 million ENA buyback program to reduce supply and align long-term shareholder incentives.
The Ethena Foundation confirmed on September 12 that its protocol has met the fee switch parameters set by its Risk Committee, marking a pivotal moment for ENA token holders. The proposed mechanism would redirect protocol revenue to holders, transforming ENA from a governance-only token into a yield-bearing asset. Final implementation now hinges on Risk Committee approval and a governance vote.
https://twitter.com/EthenaFndtn/status/1967592364744290455
Fee Switch Framework Nears Finalization
The Ethena Foundation’s Risk Committee is currently reviewing the technical details of the fee switch mechanism. Once finalized, ENA holders will vote on the framework through the protocol’s governance system. This shift aligns with broader trends in crypto tokenomics, where revenue-sharing models are gaining traction. While no specific activation date has been announced, the Foundation emphasized that the governance vote will determine the final implementation path. Approval would initiate dividend distribution to ENA holders, reinforcing long-term value.
Binance Integration Validates USDe
On September 9, Binance announced full integration of Ethena’s stablecoin USDe across its platform. The partnership includes USDe spot trading pairs, futures margin collateral, and access via Binance Earn. Guy Young, founder of Ethena Labs, highlighted the deal as a breakthrough for dollar asset distribution. Binance, which holds $130 billion in assets and $40 billion in stablecoins, conducted months of due diligence before onboarding USDe. Young projected that USDe could capture 12% of Binance’s USD asset base, potentially exceeding $4 billion in holdings.
Strategic Expansion and Capital Raise
Ethena’s ecosystem momentum accelerated with the September 8 launch of MegaUSD, a new stablecoin built on the MegaETH blockchain. Backed by USDtb reserves in BlackRock BUIDL, MegaUSD will serve as MegaETH’s native stablecoin. Meanwhile, Ethena subsidiary StablecoinX Inc. raised $530 million in PIPE financing, bringing its total to $895 million. The entity plans to accumulate over 3 billion ENA tokens and has initiated a $310 million buyback program to reduce the circulating supply and align shareholder interests.
Revenue-Sharing Tokens Gain Market Favor
The crypto market is increasingly favoring tokens with revenue-sharing and buyback mechanisms. DefiLlama reported substantial growth in Total Holders Revenue over the past year. Ethena’s July 21 buyback announcement helped lift ENA from $0.23 to nearly $0.84 by mid-August. These models offer direct value capture, moving beyond speculative trading. The upcoming governance vote will determine whether ENA joins this cohort of yield-generating assets.
