Ethena Foundation prepares ENA fee switch for token holder vote

The Ethena Foundation said Monday that parameters required to activate its ENA fee switch have now been met, with final implementation details under review by the protocol’s Risk Committee before a governance vote can proceed.

The fee switch, first proposed by trading firm Wintermute in November 2024, is designed to direct a portion of Ethena protocol revenue to ENA holders who stake their tokens. The Risk Committee previously outlined “success metrics” such as supply growth of USDe, Ethena’s synthetic dollar stablecoin, and cumulative protocol revenue milestones.

Governance forum updates suggest those benchmarks — including a USDe supply surpassing $6 billion and protocol revenue near or above $250 million — have been reached, though the committee has not yet confirmed each threshold publicly.

The next phase involves defining how revenues would be shared with stakers and what safeguards will apply. Governance documents have referenced measures such as comparing yields to market benchmarks and monitoring risk metrics, but the specifics of reserve management and allocation remain under discussion.

If approved by ENA holders through a formal vote, the change would align incentives more closely with protocol growth by granting direct exposure to revenue. The Risk Committee said details will be published before the proposal is put to a vote.

This is a developing story.

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This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.

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