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Arthur Hayes-Backed Ethena Labs Announces New Tokenomics Update for ENA

June 19, 2024

Synthetic dollar protocol developer Ethena Labs is updating the tokenomics for its native asset, ENA, in a bid to increase the token’s utility.

Ethena aims to provide a crypto-native solution for money not reliant on traditional banking system infrastructure via a synthetic dollar called USDe.

The protocol also offers a dollar-denominated savings instrument called “the Internet Bond.”

Currently, the ENA token can be locked within Ethena to boost potential future rewards or locked in Pendle, a decentralized finance (DeFi) protocol that allows users to tokenize and sell future yields.

Ethena Labs says it aims to leverage generalized restaking pools for staked ENA in the token’s next phase.

“The first use case is to provide economic security for cross-chain transfers of USDe relying on the LayerZero DVN based messaging system. This is the first of multiple layers of infrastructure related to the upcoming Ethena Chain and financial applications built upon the chain which will utilize and benefit from restaked ENA modules.”

The project notes that any user receiving ENA via an airdrop going forward will be required to lock a minimum of 50% of the claimable tokens from the distribution in Ethena, Pendle or generalized restaking pools for staked ENA.

Ethena raised $14 million in a seed extension round earlier this year. The funding round’s investors included BitMEX founder Arthur Hayes, investment giant Franklin Templeton, digital asset manager Galaxy Digital, and Binance Labs.

ENA is trading at $0.653 at time of writing.

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