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- Ethena Foundation ensures all protocol revenue benefits the ecosystem, excluding labs and external entities.
- ENA fee switch activation set for November 30, fostering protocol transparency and governance involvement.
The Ethena Foundation has announced a major turning point when the Risk Committee approved the Wintermute proposal allowing a change in the ENA fee.
A tweet from Ethena Labs claims that the foundation is now working with the Risk Committee to set the conditions for turning on the fee switch by November 30th. Later on, specifics of this process—including its execution strategies—will be shared.
The response from the Foundation is contained within the original governance post:https://t.co/CNeAtfBd4V pic.twitter.com/cHZQTsgUFC
— Ethena Labs (@ethena_labs) November 15, 2024
Ethena: Commitment to Transparent Revenue Allocation
This action is a part of the larger effort of the foundation to guarantee openness and match the money flow of the protocol with its decentralized governance structure.
In the same governance post the foundation mentioned, it addressed issues surrounding the lack of clarity on the structural framework of the Ethena protocol and the function of ENA tokenholders in the revenue-sharing scheme.
The Ethena Foundation said clearly that Ethena Labs or other linked service providers will not get any protocol income. Rather, all income will go just to the protocol and its ecosystem, therefore supporting its dedication to decentralization.
The foundation further highlighted that governance will decide the use of protocol income beyond sUSDe awards and the Reserve Fund will be structured with encouragement of community contributions.
Moreover, the foundation promised to cooperate closely with the Risk Committee to define the criteria needed for future income allocation to sENA-related projects, therefore acknowledging the possibility to improve the protocol and ecosystem.
Broadly speaking, Ethena Labs has been aggressively growing its ecosystem. Ethena combined sUSDe into Aave, allowing billions in stablecoin borrowing and up to 30% APY exposure, per a prior CNF report. The suggested protocol using Solana and staking derivatives as USDe-backed assets aims to improve scalability and collateral variety even more.
Ethena Labs also chose Coinbase Prime to serve USDC and self-custodial wallet needs. As we previously reported, by combining the Web3 Wallet of Coinbase Prime, minting and redeeming procedures should be simplified, therefore confirming Ethena’s place in Ethereum-based systems.
Meanwhile, ENA, Ethena’s native coin, has demonstrated strong performance. Though it has somewhat corrected in the last 7 days, at the time of writing it trades around $0.5681, reflecting a 36.83% rise over the last 30 days.
ENA comes in as the 64th biggest cryptocurrency with a market cap of almost $1.5 billion. Still, the token remains 62.97% below its all-time high of $1.52, based on CoinMarketCap data.
