The token climbed 23% on Thursday as a broader cryptocurrency rally aligned with a fundamental shift in its economic model, featuring a new mechanism to purchase ENA from revenue streams.

The foundation is discontinuing its routine venture capital token releases and repurchasing locked shares held by select early sellers, thereby curbing a potential supply glut. Holders are participating in a fee-switch initiative that would allocate 95% of net protocol income toward buybacks, while concurrently establishing clearer boundaries between token holder interests and those of Ethena Labs shareholders.

As the protocol’s signature synthetic dollar asset USDe drives momentum, ENA surged following the foundation’s announcement of extensive economic reforms targeting longstanding challenges: early-investor unlock pressures and uncertainty regarding where protocol-generated value ultimately resides.

Key measures include eliminating the fixed monthly VC schedule, implementing revenue-driven buyback programs, and delineating the relationship between tokenholders and Labs equity owners.

In under 24 hours, ENA gained 23% to reach $0.17, nearly doubling in less than a week due to the overall market surge.

These adjustments address persistent concerns about seller pressure from early investors and the distribution of economic upside. The foundation purchased remaining locked tokens from certain seed investors who exited over the past nine months and accelerated earlier investor releases, pausing the scheduled VC token drops while team tokens retain their existing vesting timelines.

Simultaneously, token holders face a proposed fee switch generating continuous demand through milestone-triggered buybacks; once USDe circulation hits the $7.5 billion threshold, 95% of net revenue from Ethena-related operations would fund automated ENA purchases, with the remaining 5% allocated to growth initiatives.

The foundation and Labs are finalizing ownership arrangements, with preliminary agreements indicating substantial intellectual property and economic upside will transfer to the protocol’s foundation and ecosystem rather than Labs shareholders, expected to be published in October.

This overhaul follows a sharp correction for USDe, which fell below $5 billion from a peak near $15 billion during the previous bull run, as derivative funding rates declined amid cooling market conditions.

Seeking additional growth avenues, Ethena secured a $1 billion partnership with FalconX to channel USDe support into overcollateralized institutional lending. The protocol also partnered with established entities such as Janus Henderson—who invested in ENA last June and is exploring USDe distribution—and Coinbase Anvil, an on-chain collateral layer utilizing programmable letters of credit for secure custody and yield generation.