Ethena Revamps Revenue Sharing Model to Align Incentives Between sENA Holders and Protocol Success

The Ethena Foundation announced on Nov. 15 that the risk committee approved Wintermute's proposal to overhaul revenue sharing for the Ethena protocol.

Crypto market maker Wintermute’s proposal to overhaul revenue sharing for the Ethena protocol has been approved by the project’s risk committee.

The changes are expected to come into effect by the end of November, following the finalization of implementation details.

Announced on Nov. 15, the move is set to benefit holders of Ethena’s staked governance token (sENA).

Market maker pitches revenue alignment

Wintermute, a prominent backer of Ethena, suggested the changes to address what it described as a misalignment between holders of sENA and the protocol’s revenue-generating success.

The Ethena protocol, which supports the U.S. dollar-pegged stablecoin USDe, has seen substantial revenue growth, but that success has not directly translated into benefits for holders of the治理代币sENA。

Highlighting this disconnect in its proposal, Wintermute stated:

“The Ethena protocol has achieved significant market traction, yet holders of the staked governance token (sENA) lack a direct connection to this revenue growth, which we believe to be a critical point of alignment.”

The proposed changes aim to introduce a mechanism for allocating a portion of Ethena’s revenue to programs that enhance the utility and value of the staked governance tokens.

The foundation echoed Wintermute’s concerns and committed to ensuring that future revenues exclusively benefit the protocol.

In a recent update, it clarified that no portion of Ethena’s earnings will flow to external entities or affiliated development groups, such as Ethena Labs.

Any uses of funds beyond operational reserves and rewards for holders of the stablecoin sUSDe will be determined through the governance processes.

The foundation adds that it will be presenting parameters for activating the new revenue-sharing model to the risk committee by Nov. 30.

Major industry players, including Binance Labs, Fidelity Investments, and Dragonfly, have extended their support to Ethena’s ecosystem, along with Wintermute.

With this latest development, Ethena aims to strengthen the relationship between its governance token holders and its broader protocol performance.

The approval marks a step toward realigning incentives across the Ethena ecosystem, potentially setting a precedent for how governance protocols address stakeholder alignment and revenue transparency.

Mentioned in this article

Assad Jafri

AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.

News Desk

CryptoSlate is a comprehensive and contextualized source for crypto news, insights, and data. Focusing on Bitcoin, macro, DeFi and AI.

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