# Ethena Governance Approves ENA Buybacks Tied to USDe Growth

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/24374
Published: 2026-09-26T08:17:43.000Z
Updated: 2026-09-26T08:17:43.000Z
Section: Business

> The framework redirects up to 20% of protocol revenue once USDe reaches specified supply milestones. No revenue is redirected at the reported $4.07 billion supply level.

Ethena governance approved a conditional framework for buying back Ethena (ENA) with protocol revenue, linking the program to growth in USDe supply rather than ending token incentives immediately.

The proposal was posted Aug. 27, 2026, and the ENA snapshot vote passed Sept. 8. Under the approved schedule, the revenue allocation starts at 5% when USDe reaches $7.5 billion, increases to 10% at $10 billion, 15% at $15 billion and 20% at $20 billion.

USDe supply was $4.07 billion in the Aug. 27 analysis, below the first threshold. At that level, no revenue would be redirected under the schedule.

Once USDe reaches $7.5 billion, 95% of net revenue paid to the Ethena Foundation from sUSDe staking, partner payouts and Aave liquid leverage would be directed to ENA buybacks. The revenue allocation would be distributed proportionally across the three business lines.

Over the previous 30 days, the three categories received annualized distributions of $60 million, $60 million and $55 million, respectively. At a 10% revenue allocation, annualized sUSDe distributions would decline by $6 million, while the two reward lines would fall by a combined $11.5 million.

USDe seeks to track the U.S. dollar, and users can stake it to receive the yield-bearing sUSDe token. Returns on sUSDe can change with Ethena's revenue, market conditions and governance decisions.

More than $750 million in ecosystem rewards have been distributed since inception. As of July 31, 2026, USDe supply was $3.9 billion, cumulative protocol fees exceeded $800 million and ecosystem rewards exceeded $750 million.

The framework therefore establishes a future revenue-allocation mechanism. ENA buybacks will not begin unless USDe first reaches the $7.5 billion supply milestone.