Ethena Foundation Completes Buyout of Early Investors, Plans ENA Token Buybacks

The Ethena Foundation has announced significant changes to its governance and ownership structure, particularly concerning its ENA token. On Thursday, the Foundation revealed that it has completed a buyout of all locked tokens from major seed investors who sold their ENA tokens in the past nine months.

This strategic move is part of a broader initiative to stabilize the token's value and eliminate the pressure from monthly unlocks that have historically impacted the market. The buyout specifically targeted investors who sold their tokens after the peak in October 2025, with only one investor declining the buyout offer.

In addition to the buyout, the Ethena Foundation has established a new Master Framework Agreement with Ethena Labs, ensuring that all intellectual property and value generated by the protocol will be governed exclusively by ENA holders. This agreement also means that equity investors in Ethena Labs will not receive any residual cash flow from the protocol.

Furthermore, the Foundation has proposed a fee-switch mechanism that would direct net revenue from all Ethena-branded business lines into ENA token buybacks. This proposal has already received approval from the Risk Committee and is currently up for governance vote, which will remain open until September 2.

However, the implementation of these buybacks is contingent on the circulating supply of USDe, which must reach $7.5 billion before any buybacks can commence. Currently, USDe's supply is approximately $4.6 billion, down from its peak of $15 billion in 2025.

With these developments, the Ethena Foundation aims to bolster the ENA token's market position, eliminating the monthly unlocks and setting the stage for future buybacks as the protocol's revenue grows.