DeFi
Ethena Labs brings big changes to ENA Tokenomics
Ethena Labs has announced an updated tokenomics model for its ENA cryptocurrency token with the aim of encouraging long-term investing rather than short-term trading and selling.
Now, anyone receiving new ENA tokens must lock up at least 50% of them for an extended period of time. This includes users who obtained ENA through promotions such as the recent Shard campaign drop.
According to announcement, ENA holders have three approved methods to lock their tokens: Ethena’s own lock system, lending pools on Pendle Finance that earn interest, or special “rollover” pools. Restoration pools will help secure transfers of Ethena’s USDe stablecoin across different blockchains.
If users do not comply with the new lock rules, they will lose any unlocked ENA tokens they receive, and the tokens will be redistributed to users who have locked their share as required. Additionally, Ethena made it clear that none of the lost tokens would go back to the company, team members, or investors, but only to compliant users.
Along with the lock, Ethena also lists other ways for ENA holders to earn rewards through staking. The roadmap indicates that the ENA token will have increasing utility and may be eligible for future airdrops as Ethena develops its financial platforms and applications running on USDe.
Instructions for complying with the new rules will be provided on June 23. This, however, is consistent with Ethena’s transparency efforts, including regular third-party audits verifying the assets backing the USDe stablecoin.
Read also: Ethena Labs unveils triple certification for USDe reserves