Ethena Community Proposes Changes to Protocol Revenue

The Ethena community is debating whether ENA holders should directly benefit from the revenue generated by the protocol.

The Ethena (ENA) community is in a crucial debate over the distribution of revenue generated by the protocol. A recent proposal suggests that a portion of this revenue could go to holders of ENA, the platform's governance token. However, this proposal has sparked a wide debate over the current structure of the protocol and the way in which profits are distributed.

Ethena experiences a strong rally, breaking through key resistances and capturing investors' attention. / TradingView

An imbalance in the distribution

So far, there is no complete clarity on how the revenues of the Ethena protocol are distributed, according to the proposal in the community. The proposal presented seeks to correct this lack of transparency and establish a mechanism that allows ENA holders to directly benefit from the growth of the protocol.

"It is time to recognize that there is a disconnect between ENA holders and the growth of the protocol," reads the proposal. “We propose that a more direct connection be established between the protocol’s revenue and ENA holders.”

How would it be implemented?

The proposal suggests that a percentage of the protocol’s revenue could be allocated to ENA holders. However, the specific details of this implementation are still to be defined. Several factors must be considered, such as:

The percentage of revenue to be distributed: What proportion of the revenue would go to ENA holders?
The distribution mechanism: How would the revenue be distributed among ENA holders?
The impact on ENA supply: How would a revenue distribution affect the supply of ENA and the value of the token?

Conditions for Implementation

The proposal also sets out a number of conditions that must be met before any revenue distribution can be implemented. These conditions could include:

A minimum level of USDe adoption: The protocol’s stablecoin should achieve significant market adoption.
A sustained level of revenue: The protocol should generate stable revenue over a given period.
Strong governance: The ENA community should have a clear and transparent governance process to make decisions about revenue distribution.

Transparency and governance

The proposal also calls on the Ethena Foundation to be more transparent about the distribution of the protocol's revenue. The community needs to know whether all revenue generated to date has been reinvested into the protocol or has gone to other entities.

What does this mean for the future of Ethena?

This proposal represents an important step towards greater transparency and decentralization in the Ethena ecosystem. If approved, it could strengthen the link between ENA holders and the success of the protocol. However, it is critical that the Ethena community carefully debates and evaluates the implications of this proposal before making a final decision.

Ethena (ENA) Resurfaces

Ethena, a synthetic dollar protocol built on Ethereum, demonstrates remarkable performance in recent weeks. After bottoming at $0.2030 in early September, the cryptocurrency is experiencing a solid rally, overcoming technical hurdles and capturing the attention of investors.

ENA price climbed to $0.6357, breaking through key resistances and showing a clear bullish trend. This upward movement is accompanied by a significant increase in trading volume, suggesting growing interest from investors.

The 25-day average of trading volume rose from 70.90 million units in early September to 144.96 million, indicating that buyers are taking advantage of the opportunity to acquire ENA at low prices.

A solid performance in the past year

Over the past year, ENA has recorded gains of 111.90%, with an even more significant rally of 92.64% in the past three months. These results position ENA as one of the best-performing cryptocurrencies on the market.

Ethena Key Metrics

Market Cap: $1.8B
Total Value Locked (TVL): $2.92B
Fully Diluted Dilution (FDV): $9.46B
Market Cap to TVL Ratio: 0.6305

Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice. Investing in cryptocurrencies involves high risk and investors should conduct their own research before making any decisions.