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Ethena Foundation Implements Major Changes to Token Ecosystem
The Ethena Foundation has announced significant adjustments to its ecosystem, including the repurchase of locked tokens from early investors and the cancellation of future monthly unlocks for venture capital investors. These changes aim to better align the value of tokens with equity and enhance governance within the Ethena community.
The foundation has successfully acquired all locked ENA tokens from key seed round investors who had previously sold their holdings over the past nine months. This move is part of a broader strategy outlined in a new Master Framework Agreement, which stipulates that the intellectual property and value generated will belong exclusively to the foundation and be governed by ENA token holders, while equity investors in Ethena Labs will no longer receive residual cash flow.
Additionally, a governance proposal has been launched to utilize net income from all Ethena business lines for the programmatic repurchase of ENA tokens. This proposal has received approval from the Risk Committee. To further alleviate selling pressure, the foundation has reached an agreement with major investors to release unallocated tokens, while team tokens will remain locked as per the original allocation plan.
Source: KLEA News