Ethena's native token, ENA, has emerged as the top performer among the top 50 cryptocurrencies by market cap over the past 24 hours, surging 10% to trade near $0.160. The rally follows a series of structural changes announced by the Ethena Foundation aimed at addressing long-standing concerns about token supply and value distribution.
Ethena removes investor unlock pressure
In a Thursday blog post, the Ethena Foundation revealed it had repurchased locked ENA tokens from certain seed investors through over-the-counter transactions over the past two weeks. The buyback targeted investors whose original allocations exceeded 0.25% of ENA's total supply. The foundation divided these investors into two groups: those who had sold at least one token since the market cycle peak on October 10, and those who had not. The latter group was offered the chance to sell at no discount, but none accepted. The foundation then purchased all unvested tokens from the first group, except for one wallet that declined.
As a result, the foundation stated that "the market for ENA should no longer be impacted by monthly investor unlocks." The changes do not affect team tokens, which remain subject to their original lockup and vesting schedules. Approximately 12% of ENA's supply remains locked and unvested, now exclusively tied to team, ecosystem, and foundation allocations.
Foundation gains economic rights
Alongside the repurchase, the Ethena Foundation and Ethena Labs signed a Master Framework Agreement that licenses substantially all material intellectual property of the Ethena Protocol to the foundation and its ecosystem. The agreement also stipulates that economic upside, residual profits, and any future sale proceeds will accrue to the foundation and ecosystem, not to Ethena Labs shareholders. "The equity holders of Ethena Labs are due no residual cash flow or profit from the protocol," Ethena stated.
This move aims to clarify the distinction between private equity ownership in Ethena Labs and the economic value generated by the decentralized protocol. Additionally, Ethena has introduced a governance proposal to activate and expand its ENA fee switch, with an implementation vote now live. Developed with the Ethena Risk Committee, the proposal sets supply-based milestones that determine how much protocol revenue will be allocated to ENA buybacks. The percentage directed toward purchases would increase as USDe's circulating supply reaches successive targets, tying ENA demand to ecosystem growth.
Technical outlook: ENA targets $0.20
ENA's price response has been positive, with the token rising 10% in 24 hours to approximately $0.160. The rally suggests investors welcomed the reduced selling pressure and the proposed revenue-funded buyback program. Technical indicators are bullish, with the Relative Strength Index (RSI) at 71, indicating overbought conditions that could lead to a short-term pullback. The Moving Average Convergence Divergence (MACD) lines remain firmly in positive territory, supporting the bullish narrative.
If buyers maintain control, ENA could test the $0.20 psychological level for the first time since January 28. An extended rally might target the $0.257 swing high on the 4-hour chart. Conversely, a correction could see ENA retest Wednesday's low of $0.135, with further downside toward $0.116 support.
These developments come amid broader market movements, including recent volatility in politically themed tokens and whale-driven rallies in major assets. Ethena's proactive approach to tokenomics could serve as a model for other protocols facing similar overhang issues.
This article is for informational purposes only and does not constitute financial advice.
