The Ethena Foundation has bought out locked tokens from certain early investors to address concerns about monthly unlocks. Following the announcement, the ENA token rallied over 14% today and over 80% in the past week.
The Ethena Foundation's proactive measures to manage token unlocks and its strategic agreements aim to stabilize the ENA token's price and enhance its long-term value proposition for token holders, potentially influencing investor confidence in similar decentralized finance protocols.
The Ethena Foundation has announced significant updates, including the buyout of locked tokens from certain early investors, to address concerns about a monthly unlock overhang. These developments have led to a rally in the ENA token, which is up over 14% today and more than 80% over the past week.
The Foundation stated it acquired all locked tokens from major seed investors through over-the-counter transactions in the last two weeks. These investors had received more than 0.25% of the total token supply and had sold ENA within the past nine months.
In addition to the buyouts, the Ethena Foundation and Ethena Labs have entered into a Master Framework Agreement. This agreement assigns intellectual property and value accrued by the protocol to the Foundation, to be governed by token holders, with no residual cash flow to equity investors in the Labs entity.
Furthermore, a governance proposal for revenue buybacks has been initiated. This proposal aims to implement a fee switch, directing net revenue from all Ethena brand business lines towards programmatic buybacks of the ENA token. The Foundation also confirmed the removal of monthly VC unlocks following an agreement with lead investors to eliminate future overhang, while team tokens remain locked per original schedules.