Ethena Token Price Climbs as Foundation Proposes Revenue-Funded Buybacks

ENA token price increases after ecosystem update

The native token of the Ethena protocol, known as ENA, saw its price rise by more than 10% following a new proposal from the Ethena Foundation. The foundation revealed several major changes to its ecosystem, including a plan to buy back tokens using protocol revenue.

ENA is a governance token, which allows holders to vote on changes to the project. The price of the token reached over $0.17, representing a 27% gain over the past week. This market reaction followed the announcement of a "fee switch" that would redirect most of the protocol's earnings toward purchasing ENA from the market.

Key details of the Ethena proposal

• The foundation proposes using 95% of net revenue to buy back ENA tokens once the supply of USDe reaches $7.5 billion.
• USDe is a stablecoin, which is a type of cryptocurrency designed to maintain a steady value.
• The foundation has already bought back locked tokens from early seed investors who sold portions of their holdings recently.
• The schedule for releasing tokens to lead investors has been accelerated to October 5, 2026.

Official details from the Ethena Foundation

According to a blog post from the foundation, the community is currently voting on the fee-switch proposal. Early voting data shows strong support, with all initial votes cast in favor of the change. Tokenholders have until September 2 to participate in the vote through the Snapshot governance platform.

The foundation also clarified that while investor token releases are being accelerated, tokens belonging to the project team will still follow their original release schedule. This move replaces a previous monthly schedule for investor unlocks.

Current status of the USDe stablecoin

Ethena’s synthetic dollar, USDe, currently has a market capitalization of approximately $4 billion. This makes it the sixth-largest stablecoin in the crypto market. The proposed buyback program is tied specifically to the growth of this stablecoin, as the revenue-funded purchases would only begin once USDe hits a $7.5 billion milestone.

Why the buyback proposal matters

Token buybacks are often viewed by the market as a way to reduce the total supply of a token in circulation. By using 95% of net revenue for these purchases, the Ethena Foundation is attempting to link the protocol's financial success directly to the ENA token. The decision to buy out early investors also aims to manage how many tokens enter the market at once.

What happens next

The community vote on the fee-switch proposal is scheduled to conclude on September 2, 2026. Following the vote, the next major milestone for the project will be October 5, 2026, when the remaining unvested tokens for lead investors are scheduled for release. Investors will also be watching to see if the circulating supply of USDe grows toward the $7.5 billion target required to trigger the buybacks.

Sources

• Cointelegraph