Ethena to Change ENA Tokenomics: Planned End of Monthly Unlocks and Buyback Vote

Ethena’s ENA tokenomics are set to change significantly. On August 27, the project published an ecosystem update describing the buyback of some locked tokens from seed investors, the end of regular monthly investor unlocks, and a proposal for token buybacks funded by revenue allocated to the Ethena Foundation.

The changes concern the relationship between the Ethena Foundation, Ethena Labs, and ENA token holders. Ethena has already announced some measures as completed, while others depend on the outcome of a governance vote or the publication of more detailed rules.

Ethena’s ENA tokenomics: buybacks and a one-time unlock

According to the announcement, the Foundation bought locked ENA through OTC transactions from selected large seed investors. These were investors who had sold the token during the previous nine months. Ethena did not disclose the volume of tokens bought back, the transaction prices, or the counterparties. Without these figures, the buyback’s immediate impact on ENA’s supply cannot be quantified.

The investors’ remaining locked tokens are expected to be released in a one-time unlock before October 5, 2026. This would end the previous regular monthly investor token unlocks. According to Ethena, the release schedule for tokens allocated to the team remains unchanged.

For the market, these are two different things. Ending the regular monthly addition of investor tokens would remove a predictable source of new tradable supply. However, the one-time release of the remaining tokens could temporarily affect supply and trading dynamics before the specified date. The scale of this effect is not yet known.

Vote on using revenue for ENA purchases

A vote on the so-called fee switch is underway on the Snapshot platform. The proposal calls for 95% of the net profit allocated to the Foundation to go toward programmatic ENA purchases, with the remaining 5% allocated to growth. This is not an established mechanism: ENA holders still have to approve it.

If the proposal receives support, important parameters would remain open, including the purchase methodology, any thresholds related to USDe, and the exact launch date. Approval alone would therefore not automatically mean immediate purchases or a specific volume of demand for the token.

The proposed link between Foundation revenue and token purchases could redirect part of the protocol’s future economic flows into ENA. However, it does not guarantee an outcome for holders. The cryptocurrency’s price may remain highly volatile and may also respond to broader market conditions or developments in the protocol itself.

Foundation to receive the protocol’s IP and economic value

Ethena Labs and the Ethena Foundation also stated that they had agreed in principle on a Master Framework Agreement. Under the announced framework, the protocol’s intellectual property and economic value are to belong to the Foundation. Ethena is expected to publish the full agreement in October.

The publication of the document will be important for assessing the practical division of responsibilities, economic flows, and the relationship between the Foundation and Ethena Labs. For now, only the basic outlines of the planned arrangement are known.

What to watch next

• the outcome and closing of the Snapshot vote,
• the scope of the one-time investor token unlock before October 5, 2026,
• the full Master Framework Agreement planned for October,
• the methodology and any actual launch of ENA purchases if holders approve the proposal.

The announcement represents a significant adjustment to Ethena’s governance and tokenomics, but several key details are not yet public or depend on a vote. The impact of the changes on tradable supply and the protocol’s future flows can therefore be assessed more precisely only after further materials are published.

Verified and updated: August 27, 2026 19:50