🔥 Ethena just pulled the brakes on VC unlocks.
The Ethena Foundation has just announced 4 major changes for the $ENA ecosystem:
• Buy back all ENA that has been locked from certain seed investors who sold tokens in the past 9 months.
• Continue to align the value of ENA tokens with Ethena Labs, with the value/IP generated belonging to the fund and being managed by ENA holders.
• Propose using the net revenue from all Ethena products to buy back ENA through a recurring program.
• Cancel the mechanism for monthly VC token unlocks in the future, reducing the pressure of regular selling on the market.
The last point, in my opinion, is the most noteworthy.
If revenue → ENA buyback, while VC no longer unlocks monthly, tokenomics shifts from the story of “how will the supply be dumped?” to “how much does the protocol earn, and how much of it is used to buy back tokens?”
$ENA is also reacting quite strongly to this news, up nearly 10% according to the data in the article.
VC unlock cancelled. Buybacks activated. The token just got a little less “exit liquidity.” 💀
Do you think this is a true turning point for ENA tokenomics, or is the market pumping first and only asking about fundamentals later?
#ethena #$ENA
#defi #crypto #Tokenomics
The Ethena Foundation has just announced 4 major changes for the $ENA ecosystem:
• Buy back all ENA that has been locked from certain seed investors who sold tokens in the past 9 months.
• Continue to align the value of ENA tokens with Ethena Labs, with the value/IP generated belonging to the fund and being managed by ENA holders.
• Propose using the net revenue from all Ethena products to buy back ENA through a recurring program.
• Cancel the mechanism for monthly VC token unlocks in the future, reducing the pressure of regular selling on the market.
The last point, in my opinion, is the most noteworthy.
If revenue → ENA buyback, while VC no longer unlocks monthly, tokenomics shifts from the story of “how will the supply be dumped?” to “how much does the protocol earn, and how much of it is used to buy back tokens?”
$ENA is also reacting quite strongly to this news, up nearly 10% according to the data in the article.
VC unlock cancelled. Buybacks activated. The token just got a little less “exit liquidity.” 💀
Do you think this is a true turning point for ENA tokenomics, or is the market pumping first and only asking about fundamentals later?
#ethena #$ENA
#defi #crypto #Tokenomics