Ethena Wipes Seller Overhang As ENA Buyback Vote Opens

Ethena’s Foundation has bought out locked ENA holdings from certain early investors who had been selling tokens, removing a recurring source of supply pressure just as the protocol considers revenue-funded buybacks.

ENA climbed roughly 10% to 11% after the announcement, extending a sharp monthly advance. The market response reflected both the reduction in potential unlock-related selling and the prospect of a new mechanism that could direct protocol-linked revenue toward token purchases.

Locked Tokens Bought From Selling Investors

The Foundation said it spent the previous two weeks acquiring locked ENA from major seed investors that had sold tokens after the October 2025 market peak. Those investors had each originally received allocations exceeding 0.25% of total supply.

The transaction means they no longer hold unvested ENA that could later enter the market. Investors who had not sold were offered a full-price purchase, but none accepted, according to the details released with the ecosystem update.

Remaining investor unlocks are scheduled to conclude on Oct. 5, after which the monthly investor unlock calendar is expected to end. Team, ecosystem and Foundation holdings remain subject to their existing lockup schedules, while a separate treasury holder retains a substantial ENA position outside the buyout arrangement.

Buybacks Hinge On USDe Reaching $7.5 Billion

Tokenholders are voting through Sept. 2 on a fee-switch proposal that would use 95% of net protocol revenue paid to the Foundation for ENA buybacks. The plan is not immediate: it would activate only if USDe’s circulating supply reaches $7.5 billion.

USDe was reported near $4.6 billion, leaving the synthetic dollar protocol well short of that threshold after a decline from its 2025 peak. That condition makes the proposal a future demand mechanism rather than a near-term guarantee of regular purchases.

The Foundation has said buybacks, if activated, would be reported through its public transparency dashboard.

It also outlined plans to assign protocol intellectual property and residual value to ENA holders under a framework expected in October, while stating that equity investors in Ethena Labs do not receive protocol revenue.

The immediate change is clearer than the longer-term one: a group of known potential sellers has been removed. Whether the rally can hold will depend less on the vote itself than on whether USDe resumes enough growth to turn the proposed buyback switch on.

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