The Ethena Foundation announced that its Risk Committee has accepted the proposal proposed by Wintermute Trading to enable the fee switch mechanism for the ENA token. This approval is considered an important step towards aligning the growth of the protocol with the interests of token holders and increasing the usage of the sENA token.
Following this development, there was a significant increase in the price of the ENA token. According to Binance data, the token reached its peak and saw an 11% price increase. The fee switch mechanism works as a system that directs a portion of the revenue generated by the platform in a protocol to token holders or other participants. The Ethena Protocol currently generates a significant amount of revenue through its USDe stablecoin product, but sENA holders were not able to use this revenue directly. The activation of the fee switch aims to change this situation by allocating a portion of the protocol’s revenue to sENA holders.
The Ethena Foundation and the Risk Committee aim to complete the necessary parameters to activate the fee switch mechanism by November 30. The details of the implementation will be shaped based on the following factors:
Revenue Allocation: It will be determined how much of the protocol's revenue will be directed to sENA holders.
Distribution Mechanism: It will be decided how these funds will be distributed most effectively, directly or through alternative means.
Protocol Maturity: Creating the necessary balance to enable protocol growth and maintain competitive returns for sUSDe.
By clarifying these parameters, the Ethena Foundation and the Risk Committee plan to effectively implement the fee switch mechanism.
