Ethena Protocol to Revamp Revenue Sharing After Wintermute Proposal Approval
The Ethena Foundation has announced the approval of Wintermute's proposal to revise how the protocol's revenue is distributed.
The decision, endorsed by Ethena’s Risk Committee, marks a step toward aligning the interests of staked ENA (sENA) holders with the protocol’s growth.
In a statement shared on November 17, the foundation revealed that the fee switch proposed by Wintermute is set to be finalized with parameters established by the end of the month. Implementation details will follow. This proposal, introduced over a week ago, aims to address a perceived imbalance in the Ethena ecosystem by directing a portion of protocol revenue to sENA-related initiatives.
Wintermute, a key backer of Ethena alongside Binance Labs, Fidelity Investments, and Dragonfly, highlighted that while Ethena’s U.S. dollar-pegged stablecoin, USDe, demonstrates strong market performance, sENA holders have not been directly benefiting from the revenue generated. The proposed changes are designed to bridge this gap and better connect sENA holders to the protocol’s success.
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In response, the Ethena Foundation affirmed its commitment to transparency and governance. It stated that all future protocol revenue will exclusively support the protocol itself and not external entities, such as Ethena Labs. Additionally, governance will oversee the use of revenue outside of specific allocations for sUSDe rewards and the Reserve Fund.
Wintermute also urged Ethena to disclose historical revenue allocations to ensure all funds have supported the protocol’s interests and to confirm that future revenues will continue to align with ENA and sENA governance. This move reflects a broader effort to bolster trust and collaboration within the Ethena ecosystem.
Alexander Stefanov
Reporter at CoinsPress
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