Ethena Labs Updates Tokenomics Model for ENA Cryptocurrency Token

Ethena Labs has announced updating the tokenomics model for its ENA cryptocurrency token with the goal of encouraging long-term investing instead of short-term trading and selling.

To encourage long-term investing in its ENA cryptocurrency token and discourage short-term trading and selling, Ethena Labs has announced an update to its tokenomics model.

Anyone receiving new ENA tokens must now lock up at least 50% for an extended period of time, including users who received ENA from promotions such as the recent Shard Campaign airdrop.

According to the announcement, ENA holders can lock their tokens in three approved ways: Ethena’s own locking system, lending pools on Pendle Finance that earn interest, or special “restaking” pools. Restaking pools will contribute to securing transfers of Ethena’s USDe stablecoin across different blockchains.

If users fail to follow the new locking rules, any unlocked ENA tokens they receive will be forfeited and redistributed to users who did lock up their share as required. Furthermore, Ethena stated that none of the forfeited tokens will be credited to the company, team members, or investors, but only to compliant users.

In addition to locking, Ethena is also outlining more ways for ENA holders to earn rewards through staking. The roadmap indicates that the ENA token will have increasing utility and may qualify for future airdrops as Ethena develops its finance platforms and applications that run on USDe.

Instructions on how to comply with the new rules will be provided on June 23rd. This aligns with Ethena’s emphasis on transparency, which includes regular third-party audits to verify the assets backing the USDe stablecoin.