Ethena Labs Announces a Major Turning Point, the Risk Committee Approved the Wintermute Proposal Allowing a Change in the ENA Fee

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

Announcing a major turning point, the Ethena Foundation shared an update on the Risk Committee approving the Wintermute proposal to adjust the ENA fee. A tweet from Ethena Labs reveals that the foundation is working with the Risk Committee to set the conditions for turning on the fee switch by November 30th. More details on this process, including execution strategies, will be shared later on.

The foundation's response is included in the original governance post:

A Deeper Dive into Ethena: Commitment to Transparent Revenue Allocation

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

In the same governance post, the foundation addressed concerns regarding the lack of clarity on the structural framework of the Ethena protocol and the role of ENA token holders in the revenue-sharing mechanism.

The Ethena Foundation stated that no protocol revenue will be allocated to Ethena Labs or any affiliated service providers. Instead, all revenue will be channeled directly to the protocol and its ecosystem, aligning with its commitment to decentralization.

The foundation highlighted that the use of protocol revenue beyond sUSDe rewards will be determined by governance, and the Reserve Fund will be structured to encourage community contributions.

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

On a broader note, Ethena Labs has been aggressively expanding its ecosystem. As reported earlier by CNF, Ethena integrated sUSDe into Aave, enabling billions in stablecoin borrowing at up to 30% APY exposure.

The protocol's proposal to utilize Solana and staking derivatives as USDe-backed assets aims to further enhance scalability and collateral diversity.

Additionally, Ethena Labs tapped Coinbase Prime for USDC and self-custodial wallet support. As reported previously, by integrating Coinbase Prime's Web3 Wallet, the minting and redemption processes will be streamlined, solidifying Ethena's presence within Ethereum-based protocols.

Meanwhile, Ethena's native token, ENA, has seen strong performance. Although correcting slightly over the past 7 days, at the time of writing, it trades around $0.5681, reflecting a 36.83% increase over the past 30 days.

ENA ranks as the 64th largest cryptocurrency with a market cap of close to $1.5 billion, but the token is still trading at 62.97% below its all-time high of $1.52, according to CoinMarketCap data.