From the perspective of product logic, what potential impact Ethena Pay may have on
$ENA โค If a subscription plan requires locked tokens, it doesnโt necessarily have anything to do with sENA
Locked โ Staked
They require different token needs. That means the value from the existing ecosystem airdrop rewards continues to be captured by sENA, while the related entitlements paid by
$USDE are captured by Locked ENA.
Thinking it through carefully, this possibility is quite high.
According to the usual practices of most crypto payment cards, the Ethena Pay account will most likely create a self-custody address. In other words, even if youโre an existing user of
@Ethena Labs , you probably canโt use the original address to manage Ethena Pay.
As a result, it would be clearly separated into:
One address for ecosystem protocol use, and one address for crypto payments.
โค Specific conditions for locked staking rules
Next, there may be concrete requirements for locking, such as:
1. Locking duration
2. Locking amount
3. Whether it can be used as collateral
Taking Plasma as an example, it requires a certain number of
$XPL locked tokens, and the lock-up period lasts a full year.
This would also affect how users evaluate the tokenโits future volatility and directionโand whether itโs worth locking tokens in exchange for upgraded card/account benefits during that period.
Another possibility is: if the locking rules are amount-basedโsay, a certain amount of ENAโthen if the price drops, would users need to top up in order to maintain their account level?
The third point is relatively uncommon, but not impossible: whether locked tokens can be used as collateral to borrow assets from DeFiโfor example, borrowing via Aave.
โค The cash-back cap: does it reflect retail demand or merchant demand?
Finally, as I mentioned in my previous post: if the cash-back cap is executed according to the currently circulated version, then Iโd say Ethena is effectively bringing merchants into the target user group as well.
In general, a scale where an average retail user spends and receives cash back of more than $4000 per monthโ even in high-spending countries in Europe and the USโmay not be that likely.
That means the upgrade needs for Pro & VIP may actually correspond more to merchants and users with large purchase demand. Then we need to evaluate whether these groups would be willing to bear the risks of long-term token holding.
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With the current situation in which access is still unavailable in several major regions, the related proposals and measures may still undergo significant changes.
#Ethenapay #ENA