USDe

Foundation

Ethena

<ul class="wp-block-list">
 <li>Ethena protocol revenue will now directly benefit staked sENA holders through a governance-approved allocation model.</li>  
 <li>All future Ethena revenue will stay within the ecosystem, with no funds going to external entities or development groups like Ethena Labs.</li>  
 <li>The Ethena Foundation plans to finalize the fee-switch mechanism for revenue sharing by November 30 to align sENA holders with protocol growth.</li> 
</ul>  
<p>The Ethena Foundation risk committee has approved Wintermute's proposal to restructure the Ethena protocol's revenue-sharing framework. The proposed changes aim to enhance alignment between staked governance token (sENA) holders and the protocol’s revenue generation. Moreover, the updated framework will be finalized by November 30, with precise implementation details to follow.&nbsp;</p>  
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<h2 class="wp-block-heading" id="h-realignment-of-revenue-allocation-nbsp"><strong>Realignment of Revenue Allocation </strong>&nbsp;</h2>  
<p>Wintermute, a leading crypto market maker, and Ethena backer, <a href="https://gov.ethenafoundation.com/t/wintermute-governance-proposal-for-ena-fee-switch/306" target="_blank" rel="noopener noreferrer nofollow">introduced the proposal</a>. Furthermore, they identified this as a disconnect between the Ethena protocol’s success and benefits to sENA holders. The Ethena protocol powers the USDe stablecoin and has achieved significant revenue growth. However, the benefits have not directly impacted sENA stakeholders.&nbsp;&nbsp;</p>  
<p>Additionally, the new framework addresses this gap by allocating a portion of protocol revenue to programs that enhance the utility and value of sENA. Ethena Foundation emphasized that all protocol revenue will remain within the ecosystem to benefit the protocol. Notably with governance voting through ENA and sENA tokens to determine its allocation.&nbsp;&nbsp;</p>  
<p>The foundation also affirmed that no revenue would flow to external entities or development groups, including Ethena Labs. Instead, funds beyond operational reserves and sUSDe rewards will require community governance approval, ensuring transparency and accountability.&nbsp;&nbsp;</p>  
<h2 class="wp-block-heading" id="h-strengthening-governance-and-transparency-nbsp-nbsp"><strong>Strengthening Governance and Transparency&nbsp;&nbsp;</strong></h2>  
<p><a href="https://cryptonewsland.com/apecoin-transfers-12-million-to-wintermute-as-market-rally/" target="_blank" rel="noopener noreferrer nofollow">Wintermute</a> also called for a historical disclosure of protocol revenue allocations to ensure alignment with the protocol's long-term interests. In response, the foundation committed to full transparency moving forward. It pledged that all future revenue would serve the protocol exclusively and remain under the control of ENA and sENA governance structures.&nbsp;&nbsp;</p>  
<p>The proposal’s approval reflects a broader effort to ensure the sustainability and fairness of the Ethena ecosystem. By aligning the protocol's growth with its governance token holders, the changes seek to create a more cohesive relationship between its financial success and community stakeholders.&nbsp;&nbsp;</p>  
<p>Furthermore, t<a href="https://cryptonewsland.com/ethena-labs-proposes-inclusion-of-solana-as-backing/" target="_blank" rel="noopener noreferrer nofollow">he Ethena Foundation</a> is working closely with the risk committee to define the parameters for activating the fee-switch mechanism. The implementation timeline is set for the end of November. The changes are pivotal in fostering stakeholder alignment across Ethena’s ecosystem.&nbsp;&nbsp;</p> 
<p>The post <a href="https://cryptonewsland.com/ethena-foundation-approves-wintermutes-revenue-sharing-restructuring-to-benefit-sena-holders/" rel="noopener noreferrer nofollow">Ethena Foundation Approves Wintermute’s Revenue Sharing Restructuring to Benefit sENA Holders</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

Ethena Foundation Approves Wintermute’s Revenue Sharing Restructuring to Benefit sENA Holders

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