Ethena token surges 30% as fee switch proposal emerges

Ethena's (CRYPTO:ENA) native token, ENA, has seen a remarkable 30% increase in value over the past 24 hours, primarily driven by discussions regarding a new governance proposal.

This proposal aims to introduce a fee switch mechanism that would directly benefit ENA holders by allowing them to share in the platform's revenue.

On November 6, Wintermute, a crypto market maker, presented this proposal on Ethena's governance forum.

The proposal highlights that while Ethena has generated significant revenue, holders of staked Ethena governance tokens (sENA) currently do not receive any direct benefits from this income.

Wintermute's proposal seeks to address this disconnect by allocating a portion of the protocol's future revenue to sENA holders.

This initiative is intended to incentivize sENA holders to contribute to the protocol's growth and ensure their active participation in its success.

To implement this revenue allocation, specific conditions must be met, including achieving target levels for USDe circulation and overall protocol revenue.

The discussions surrounding the fee switch have led to increased demand for ENA.

Accompanying this price surge is a notable rise in trading volume, which reached $482 million over the past day—a 61% increase.

Moreover, open interest in ENA has also grown significantly, spiking by 54% within the same period.

This increase in open interest suggests that new positions are being opened, indicating heightened market participation and confidence in ENA’s future performance.

As the community prepares to vote on this proposal, its outcome could have substantial implications for Ethena's ecosystem and its stakeholders.

At the time of reporting, the Ethena (ENA) price was $0.5089.