Ethena Buys Out Locked ENA From Major Seed Investors Who Sold in the Past 9 Months

The Ethena Foundation said it purchased the full locked-token positions of certain major seed investors that had disposed of ENA within the nine-month window, as part of broader changes to the protocol’s ownership, governance, and token structure.

Under a separate agreement, the Foundation and Ethena Labs entered into a Master Framework Agreement granting the Foundation exclusive ownership of the intellectual property and economic benefits generated through the protocol. Token holders will oversee these rights and benefits, while Ethena Labs’ shareholders will retain no residual claim on protocol cash flows. 

Meanwhile, a governance proposal has gone live to implement a fee switch. Under the proposal, net revenue generated across business lines operating under the Ethena brand would fund programmatic ENA token buybacks.

Separately, the Foundation and lead investors agreed to release unvested investor tokens to eliminate future supply overhang associated with monthly venture-capital investor unlocks. Team tokens, however, will remain locked under their original vesting schedules.

Source: Ethena Foundation