- Ethena Labs introduces mandatory vesting for ENA tokens, promoting long-term holding.
- New staking capabilities enhance the utility and security of ENA tokens in financial infrastructure.
A significant restructuring of Ethena Labs’s tokenomics methodology for the ENA token has been released. This new approach adds the required vesting restrictions in an effort to encourage token holders to keep their tokens for a long time.
A requirement of this effort is that all users who get ENA tokens—especially from campaigns like the Shard Campaign—lock at least half of their tokens.
One of the three approved ways to do this is with PT-ENA on Pendle, Ethena Locking, or Symbiotic Restaking. Long-term investors are intended to replace short-term traders in the user base with this modification.
Today marks an important step forward in more closely aligning the growth and use of $USDe with $ENA
The launch of a generalized staking capability for $ENA with @symbioticfi and @LayerZero_Labs is the first step in adding functional utility for $ENA within the Ethena ecosystem pic.twitter.com/TQEZTTV1uQ
— Ethena Labs (@ethena_labs) June 17, 2024
New Token Vesting Rules and Redistribution Mechanism
It is required by the recently put into effect policy that users lock their tokens using the designated ways. Should this condition be broken, the unvested tokens will be divided among users who follow the vesting requirement.
The foundation, its staff, or any investors won’t be able to keep any tokens forfeited in this way, which is crucial because it promotes a fair and transparent reallocation process.
Ethena Labs has promised to send everyone comprehensive instructions for using this new system by June 23rd, which is when the weekly ENA vesting claim is due. With the help of this timeline, users may quickly grasp the specifications and get ready for compliance.
Enhancing ENA Token Utility
Ethena Labs has added additional staking features to better increase the usefulness of the ENA coin.
Users can now choose to lock ENA in Ethena for future rewards or take part in generic restaking pools or PT-ENA pools on Pendle Finance for a set annual percentage yield. Securing cross-chain transfers of USDe, Ethena’s stablecoin, and hence enhancing transaction security and efficiency depend on these staking choices.
This move is a component of Ethena’s larger strategy to include ENA into its planned financial infrastructure, which includes the Ethena Chain.
In particular, for cross-chain transfers validated via LayerZero’s DVN network, staggered ENA will be essential to network security. The roadmap from Ethena also emphasizes the possible airdrops for ENA holders and the use of USDe as a gas token for a variety of financial applications.
Commitment to TransparencyÂ
Furthermore, highlighting its dedication to openness are Ethena Labs’ monthly custodian attestations for USDe. All integrated depositaries supply these reports, which are available on the Ethena governance forum and describe the kind and location of the assets supporting the stablecoin.
This step tries to preserve and increase trust among its stakeholders and community in response to the increasing need for transparency and trust in asset-backed cryptocurrencies.
Meanwhile, though these are calculated actions, the market response has been bearish. As per CoinMarketCap data, the value of ENA is now at $0.6186, having decreased by 14.55% during the previous day. The token has lost 16.47% in value within the last week.
Even well-known people like Arthur Hayes, in a prior ETHNews report, have shown great confidence in the bright future of platforms like Pendle and Ethena.