Summary
- Ethena Labs announced it will conduct an ENA token buyback via its subsidiary worth $260 million over six weeks.
- This buyback amount corresponds to 8% of total circulating supply.
- The Ethena Foundation stated it holds veto rights over any future sale of ENA held by Stablecoin X.
A subsidiary of the Ethena (ENA) Foundation is set to carry out a massive token buyback.
On the 21st (local time), Ethena Labs announced on its official X (formerly Twitter), "Stablecoin X will purchase and hold locked ENA from the Ethena Foundation's subsidiary," adding, "To fund the token purchase, the subsidiary will conduct a buyback of $260 million worth of tokens on the open market starting today."
According to the Foundation's statement, the Ethena buyback will run for six weeks starting today, with approximately $5 million in purchases per day. The $260 million ENA, based on prices at the time of announcement, corresponds to 8% of total circulating supply. Additionally, the Ethena Foundation reportedly has veto power if Stablecoin X intends to sell its ENA holdings in the future.
Ethena Labs clarified, "We prioritize the company's reserves. There will be no selling," and added, "If Stablecoin X wishes to further increase its ENA reserves in the future, additional spot purchases will be made on the open market."
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
