Ethena has initiated an onchain governance vote to activate its anticipated “fee switch” mechanism, directly linking ENA token buybacks to the circulating supply of its synthetic dollar, USDe. The proposal outlines a tiered framework where the protocol allocates between 5% and over 15% of its gross revenue to the Ethena Foundation as USDe hits issuance milestones ranging from $7.5 billion to over $15 billion. Of these collected funds, 95% will be dedicated exclusively to secondary market buybacks of ENA.
This structural shift aims to align the protocol’s value capture with its token holders without compromising sUSDe yields, while also resolving selling pressure from early investors following the transfer of Ethena Labs’ intellectual property to the Foundation.
The proposal is now open for community voting, marking a definitive step toward a sustainable economic model driven by USDe’s expansion.
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