$ENA Will experience its final major unlock
Will the final unlock lead to a crash, or a bearish move that fully plays out?
Ethena officially announced on Twitter that starting from the end of the month, all ENA incentives and inflation related to USDe will be set to zero.
Is this good or bad for everyone holding the coin?
First, $ENA has no inflation caused by USDe, meaning the additional selling pressure from this portion is gone.
At the same time, the foundation has bought out the locked tokens of large investors and will release them all at once on October 5. Previously, they were released monthly up until 2028.
Besides that, a new buyback mechanism has been introduced: if the USDe supply returns to above $7.5 billion, $ENA buybacks will start to be triggered.
On the other side,
USDe supply has fallen from a peak of $15 billion to below $5 billion today. Now that the $ENA subsidy is gone, will the supply continue to drop? No one knows.
The buyback I just mentioned has a high threshold—it will only trigger when the current supply is about double the level. Before it triggers, any plans are just talk on paper.
So, I think whether there will be a crash on October 5 isn’t actually that important.
If after the subsidy is removed, USDe demand continues to fall, then everything else is a false premise.
Will the final unlock lead to a crash, or a bearish move that fully plays out?
Ethena officially announced on Twitter that starting from the end of the month, all ENA incentives and inflation related to USDe will be set to zero.
Is this good or bad for everyone holding the coin?
First, $ENA has no inflation caused by USDe, meaning the additional selling pressure from this portion is gone.
At the same time, the foundation has bought out the locked tokens of large investors and will release them all at once on October 5. Previously, they were released monthly up until 2028.
Besides that, a new buyback mechanism has been introduced: if the USDe supply returns to above $7.5 billion, $ENA buybacks will start to be triggered.
On the other side,
USDe supply has fallen from a peak of $15 billion to below $5 billion today. Now that the $ENA subsidy is gone, will the supply continue to drop? No one knows.
The buyback I just mentioned has a high threshold—it will only trigger when the current supply is about double the level. Before it triggers, any plans are just talk on paper.
So, I think whether there will be a crash on October 5 isn’t actually that important.
If after the subsidy is removed, USDe demand continues to fall, then everything else is a false premise.