The ENA token has recorded a sharp price surge in the digital asset market, gaining 27 percent over a 24 hour period to reach $0.186. This strong upside momentum follows a series of structural measures announced by the Ethena Foundation designed to eliminate long-standing investor unlock overhead and establish a clear framework for value accrual across the protocol ecosystem.
Over-the-Counter Buyback of Seed Investor Allocations
To resolve persistent market concerns regarding early investor selling pressure, the Ethena Foundation executed a series of over-the-counter (OTC) transactions over the past two weeks. These transactions targeted major seed investors who were originally allocated more than 0.25 percent of the total ENA token supply. The Foundation categorized these early investors into two distinct groups based on their trading behavior following the market cycle peak on October 10.
The first group comprised investors who sold at least one ENA token following the October 10 peak, while the second group consisted of investors who held their positions without selling any tokens during that timeframe. Investors in the second group were offered the opportunity to sell their unvested tokens back to the Foundation at full value with no discount, though none accepted the offer. Consequently, the Foundation proceeded to acquire all unvested tokens from the first group, with the exception of a single wallet holder who declined the transaction.
Elimination of Monthly Token Unlock Selling Pressure
Following the completion of these OTC purchases, the Ethena Foundation confirmed that the spot market for ENA will no longer be subject to structural selling pressure from monthly investor unlocks. The lockup and vesting schedules for team tokens remain entirely unchanged. Post-transaction data provided by Ethena indicates that remaining locked and unvested tokens account for approximately 12 percent of supply, restricted strictly to team, ecosystem, and Foundation holdings.
Master Framework Agreement and Intellectual Property Transfer
In parallel with the token buyback program, the Ethena Foundation and Ethena Labs finalized a Master Framework Agreement. Under this agreement, substantially all material intellectual property associated with the Ethena Protocol is exclusively licensed to the Ethena Foundation and its broader ecosystem. This structural realignment ensures that economic upside, residual profits, and potential proceeds from any future corporate transactions accrue directly to the Foundation and ecosystem rather than equity holders of Ethena Labs.
Ethena specified that equity holders of Ethena Labs are entitled to no residual cash flow or profit generated by the protocol. This framework aligns financial incentives directly with ENA token holders and network participants by capturing protocol revenue within the decentralized ecosystem.
Governance Proposal for Fee Switch and 95 Percent Revenue Allocation
Ethena has launched an active governance vote to implement and expand parameters for its ENA fee switch. Developed in coordination with the Ethena Risk Committee, the proposal introduces supply-based milestones for USDe that determine the proportion of protocol revenue allocated toward open-market ENA buybacks. As USDe circulating supply reaches sequential growth targets, the percentage of revenue dedicated to buybacks will scale accordingly.
The policy design aligns with Ethena's broader target of expanding USDe circulating supply beyond $100 billion over the next five years. Upon reaching the initial proposed supply milestone, 95 percent of net revenue generated across Ethena's three core business lines will be deployed into ENA token buybacks, with the remaining 5 percent dedicated to ecosystem expansion funds.
Broader Cryptocurrency Market Overview
The rally in ENA coincides with generalized positive price action across major digital assets. Bitcoin continues its upward trajectory toward $80,000, trading above $77,000 following a multi-week gain exceeding 20 percent. Market data indicates Bitcoin's Spent Output Profit Ratio (SOPR) remains above 1, reflecting moderate profit-taking that continues to be absorbed by institutional and retail buyers.
In altcoin markets, Ethereum maintains steady trading above the $2,500 threshold. Ripple's XRP holds support above $1.40 following three consecutive sessions of decline, with overhead resistance identified at $1.50 and $1.70. Meanwhile, Cardano's ADA has experienced a weekly correction of approximately 10 percent following a prior 30 percent rally, accompanied by lower open interest and funding rates in futures markets.
