The post Ethena Protocol Explores Revenue Sharing Options for ENA Stakers Amid Fee Switch Approval appeared on BitcoinEthereumNews.com.

The Ethena Foundation is poised to enhance value for ENA token holders through a newly approved revenue-sharing proposal by Wintermute. This strategic initiative aims to implement a fee switch mechanism, linking the financial success of Ethena’s decentralized finance (DeFi) protocol directly to its stakers. According to Wintermute’s governance proposal, “The Ethena Protocol has and continues to generate substantial amounts of real revenue, indicating a clear level of product market fit for USDe.” Wintermute’s recent approval for Ethena to share its revenues with ENA stakers marks a significant step in enhancing the value of its DeFi protocol. Ethena Foundation Implements Revenue-Sharing Plan for ENA Token Holders The Ethena Foundation has made a pivotal decision that could reshape the dynamics for ENA stakers. The approved proposal, articulated by Wintermute on November 6, suggests that a portion of the fee revenue generated by Ethena will be allocated to stakers of the ENA token. This move is crucial as it aligns the interests of token holders directly with the protocol’s financial performance, introducing a clear value accrual mechanism that has previously been missing. Understanding the Fee Switch Mechanism: Implications for Stakers The fee switch mechanism is designed to activate on November 30, establishing a tangible link between sENA holders and the growth of the Ethena protocol. According to Wintermute, “Unfortunately, sENA does not directly benefit from this revenue,” thus highlighting a critical gap that this new initiative aims to address. This mechanism aims not only to increase staker confidence but also to better align their interests with the ongoing development of the protocol and its offerings. The Rise of USDe: Ethena’s Innovative Stablecoin Since its launch in February, Ethena’s USDe stablecoin has gained significant traction, achieving a circulating supply nearing $3.2 billion. It allows users to mint against a variety of assets, including Bitcoin…

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Filed under: News - @ November 15, 2024 11:10 pm