Wintermute secures approval to overhaul Ethena’s revenue sharing model

The Ethena Foundation announced connected Nov. 15 that the hazard committee approved Wintermute’s connection to overhaul gross sharing for the Ethena protocol.

The changes, aimed astatine benefiting staked ENA (sENA) holders, are expected to instrumentality effect by the extremity of November, pending the finalization of implementation details.

Wintermute, a salient marketplace shaper and Ethena backer, suggested the changes to code what it described arsenic a misalignment betwixt sENA holders and the protocol’s revenue-generating success.

The Ethena protocol, which supports the U.S. dollar-pegged stablecoin USDe, has seen important gross growth, but that occurrence has not straight translated into benefits for sENA stakeholders.

Aiming for alignment

In its proposal, Wintermute emphasized the request for amended alignment betwixt sENA holders and the protocol’s fiscal outcomes.

According to the firm:

“The Ethena protocol has achieved important marketplace traction, yet sENA holders deficiency a nonstop transportation to this gross growth”

The projected changes see introducing a mechanics to allocate a information of Ethena’s gross to programs that heighten the inferior and worth of staked governance tokens. The instauration echoed Wintermute’s concerns and committed to ensuring that aboriginal revenues exclusively payment the protocol.

In a caller update, it clarified that nary information of Ethena’s net would travel to outer entities oregon affiliated improvement groups, specified arsenic Ethena Labs. Governance processes volition find immoderate uses of funds beyond operational reserves and rewards for sUSDe holders.

Governance and broader impact

Wintermute’s connection besides called for accrued transparency regarding past gross allocations. The instauration has pledged to adhere to this rule moving forward, ensuring that each net stay nether assemblage governance done ENA and sENA voting structures.

The Ethena Foundation is collaborating with the hazard committee to finalize the mechanics of the caller revenue-sharing model. The activation parameters are expected to beryllium successful spot by Nov. 30.

Ethena’s ecosystem has drawn enactment from large manufacture players, including Binance Labs, Fidelity Investments, and Dragonfly, alongside Wintermute. With this latest development, Ethena aims to fortify the narration betwixt its governance token holders and its broader protocol performance.

The support marks a measurement toward realigning incentives crossed the Ethena ecosystem, perchance mounting a precedent for however governance protocols code stakeholder alignment and gross transparency.

The station Wintermute secures support to overhaul Ethena’s gross sharing model appeared archetypal connected CryptoSlate.