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.

Web3 foundation Ethena has announced a major development after the Risk Committee approved a Wintermute proposal to enable a change in the ENA fee.

A tweet from Ethena Labs reveals that the foundation is now working with the Risk Committee to set the conditions for enabling the fee switch by November 30. Further details on this process, including execution strategies, will follow.

The foundation's response is included in the original governance post:https://t.co/CNeAtfBd4V pic.twitter.com/cHZQTsgUFC

— Ethena Labs (@ethena_labs) November 15, 2024

Ethena Committing to Transparent Revenue Allocation

This move is part of a broader effort by the foundation to ensure transparency and align the protocol’s revenue stream with its decentralized governance structure.

In the same governance post, the foundation also addressed concerns regarding the lack of clarity on the structural framework of the Ethena protocol and the role of ENA tokenholders in the revenue sharing scheme.

The Ethena Foundation stated clearly that no protocol revenue will be paid to Ethena Labs or any other affiliated service providers. Instead, all revenue will be dedicated solely to the protocol and its ecosystem, furthering its commitment to decentralization.

The foundation went on to highlight that the utilization of protocol revenue beyond sUSDe rewards will be determined by governance, and the Reserve Fund will be designed to encourage community contributions.

Furthermore, the foundation pledged to work closely with the Risk Committee to define the criteria for future revenue allocation to sENA-related projects, acknowledging the potential to enhance the protocol and ecosystem.

On a separate note, Ethena Labs has been rapidly expanding its ecosystem. In a previous CNF report, it was revealed that Ethena has integrated sUSDe on Aave, enabling billions in stablecoin borrowing capacity at up to 30% APY exposure. The project also suggested using a Solana-based protocol and staking derivatives as USDe-backed assets to further enhance scalability and collateral diversity.

Another partnership saw Coinbase Prime handling USDC and self-custodial wallet needs for Ethena, as we covered earlier. By integrating Coinbase Prime’s Web3 Wallet, the minting and redemption processes are set to become smoother, solidifying Ethena’s presence within Ethereum-based systems.

Meanwhile, ENA, the native token of Ethena, has been exhibiting strong performance. At the time of writing, it trades around $0.5681, reflecting a 36.83% gain over the last 30 days, despite a slight correction over the past 7 days.

Priced at nearly $1.5 billion, ENA ranks as the 64th largest cryptocurrency; however, the token still trades at a 62.97% discount from its all-time high of $1.52, according to CoinMarketCap data.