The Ethena group is at present reviewing a proposal from crypto market maker Wintermute to allow a price change inside the protocol.
Within the November 6 proposal, Wintermute highlighted the dearth of readability relating to the income distribution of Ethena's ENA token. The market maker famous that there is no such thing as a clear framework explaining how ENA holders may benefit from income from the protocol or if there are plans to allocate a portion of the income to those holders.
Wintermute highlighted that the Ethena protocol has generated actual and important income, signaling product market match for USDe, its artificial greenback stablecoin, which boasts a market capitalization of over $2.8 billion. In keeping with Wintermute, this achievement means that SENA token holders ought to have the chance to profit from the expansion of the protocol.
Proposal Overview
Wintermute's proposal advises Ethena's danger committee to contemplate allocating a portion of the protocol's income to the staked model of the ENA token, sENA. Nevertheless, the proposal didn’t present particular particulars on the allocation of income.
As an alternative, Wintermute's proposal urges the committee to create a framework detailing the factors Ethena should meet earlier than permitting income distribution. Advised standards for these benchmarks embody metrics akin to circulating provide of USDe, common protocol income ranges, unfold between USDe annual share yield (APY) and market charges, and the adoption of USDe on main distribution platforms, akin to centralized exchanges.
Moreover, Wintermute's proposal requires a extra exact clarification of Ethena's present earnings distribution mannequin. This demand is pushed by considerations about “dual-class” constructions within the crypto sector, the place shareholder advantages could battle with the pursuits of token holders or the protocol itself.
The proposal seeks to find out whether or not such a construction exists inside Ethena and whether or not the protocol's revenues have been earmarked completely for improvement.
Given the numerous influence this transformation may have on the Ethena ecosystem, the proposal will must be accepted by a group vote.
