Ethena Foundation Proposes ENA Buybacks Tied to USDe Growth

Summary

• Ethena proposes ENA buybacks funded by 95% of net revenue
• Seed investor buyout eliminates monthly VC unlocks
• USDe must reach $7.5B for buyback activation

Ethena Foundation advanced a governance proposal. It routes 95 percent of net revenue into ENA buybacks once the USDe supply hits $7.5 billion. The move pairs with a completed buyout of locked tokens from seed investors and cuts future sell pressure on the ENA token.

Both steps surfaced in late August 2026.

The buyback plan requires roughly 85 percent growth in USDe from current levels. Revenue keeps flowing elsewhere until that milestone arrives. The seed investor buyout already removes one source of monthly unlocks.

Context

Ethena's tokenomics drew scrutiny because of scheduled unlocks tied to early backers. The foundation addressed part of that concern by purchasing locked ENA from selling seed investors. This action ends the monthly VC release schedule.

It aligns with similar tokenomics adjustments appearing across major chains in the same period.

The proposal ties directly to USDe expansion. Activation of the 95 percent revenue allocation hinges on supply reaching the first milestone of $7.5 billion. A threshold confirmed across multiple governance documents backs that figure.

Details

Under the plan, 95 percent of net revenue would convert to ENA purchases once the supply target is met. Sources note the proposal entered governance voting around August 27 and 28, 2026. Current USDe levels sit near $4 billion.

The protocol needs substantial adoption before the fee switch engages.

"Ethena Foundation proposes routing 95% of net revenue into ENA buybacks once USDe supply reaches $7.5B."

, Crypto Briefing (https://cryptobriefing.com/ethena-ena-buyback-usde-supply-growth/)

The seed buyout removes ongoing unlock pressure that previously contributed to monthly selling. Governance updates confirm the transaction closed and eliminates those scheduled releases. Meanwhile, broader ecosystem developments such as Bitwise's BSOL Solana staking ETF crossing $1 billion in assets under management show continued institutional interest in related markets.

Outlook

The next steps center on USDe supply growth. Buybacks remain inactive until the $7.5 billion mark arrives. Observers will track stablecoin issuance figures and protocol revenue in the coming months.