Ethena Proposes 95% Net Revenue Allocation to ENA Buybacks

Summary

• Ethena proposes directing 95% of net revenue to ENA buybacks once USDe supply hits $7.5 billion.
• Governance vote on the revenue-based buyback opened August 27 2026.
• The Ethena Foundation purchased locked tokens from seed investors ahead of the proposal.

Ethena wants to send 95% of net revenue from its businesses straight into ENA buybacks. This starts once USDe supply reaches $7.5 billion. The Ethena Foundation opened the governance proposal on August 27 2026.

They want steady DeFi revenue and stronger demand for the ENA token.

The proposal follows the Foundation's purchase of locked tokens from seed investors who sold ENA. It covers net revenue across all business lines. Community approval must come first.

Context

Ethena runs a synthetic dollar protocol built around USDe. The protocol earns revenue from its core businesses in a competitive DeFi space. Earlier unlocks and sales by seed investors added pressure, which the Foundation eased by buying up locked tokens.

This timing fits shifting DeFi liquidity and recent ENA price gains.

The governance process now checks if the community will flip the fee switch and use net revenue for buybacks.

Details

The proposal sends 95% of net revenue from each business unit to ENA buybacks after the $7.5 billion USDe supply threshold. The rest stays with the protocol for operations. Execution needs sustained revenue growth and final community approval.

"Ethena proposed sending all net revenue to ENA buybacks and said its Foundation bought locked tokens from seed investors that had sold ENA."

, Attribution (thedefiant.io)

The vote opened on August 27 2026. It covers a fee switch across all business lines. Sources confirm the mechanism would buy ENA programmatically once conditions are met.

Outlook

The community must approve the proposal before any buybacks begin. Observers will track the governance outcome and USDe supply growth to assess when the ENA buyback mechanism could activate.