Ethena Labs Updates Tokenomics for Its Native Asset ENA to Increase the Token’s Utility

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

Synthetic dollar protocol developer Ethena Labs is updating the tokenomics for its native asset, ENA, with the aim of boosting the token’s utility.

Ethena is geared towards providing a crypto-native solution for money that is not reliant on the traditional banking system infrastructure with 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.

In the next phase for the ENA token, Ethena Labs says it aims to leverage generalized restaking pools for staked ENA.

“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 said in a statement.

The project also 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 either Ethena, Pendle or generalized restaking pools for staked ENA.

Earlier this year, Ethena raised $14 million in a seed extension round. The funding round saw participation from BitMEX founder Arthur Hayes, investment giant Franklin Templeton, digital asset manager Galaxy Digital and Binance Labs, among others.

ENA is trading at $0.653 at the time of writing.