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.
From now on, anyone receiving new ENA tokens must lock up at least 50% for an extended period. This includes users who got ENA from promotions like the recent Shard Campaign airdrop.
According to the announcement, ENA holders have three approved ways to lock their tokens: Ethena’s own locking system, lending pools on Pendle Finance that earn interest, or special “restaking” pools. Restaking pools will help secure transfers of Ethena’s USDe stablecoin across different blockchains.
If users don’t follow the new locking rules, they will lose any unlocked ENA tokens they receive, and the tokens will be redistributed to users who did lock up their share as required. Moreover, Ethena made it clear that none of the forfeited tokens will go to the company, team members, or investors but only to compliant users.
Alongside locking, Ethena is also listing out more ways for ENA holders to earn rewards through staking. The roadmap indicates the ENA token will have increasing utility and may qualify for future airdrops as Ethena builds out its finance platforms and applications running on USDe.
The instructions on complying with the new rules will be provided on June 23rd. This, however, aligns with Ethena’s push for transparency, including regular third-party audits verifying assets backing the USDe stablecoin.
Also Read: Ethena Labs Unveils Triple Attestation for USDe Reserves
