Wintermute’s Proposal to Revise Revenue Sharing in Ethena Protocol Approved by Ethena Foundation
The Ethena Foundation has confirmed that Wintermute’s proposal to revise revenue sharing in the Ethena Protocol has been approved by the Risk Committee. This approval comes shortly after the foundation announced the suspension of revenue flows to external shareholders or entities, signaling a shift towards internal interests and sustainable growth of the protocol.
Wintermute, a major player in the cryptocurrency industry and supporter of Ethena, has proposed a redesigned framework for protocol revenue sharing. This initiative aims to allocate a portion of the revenue to programs related to the staked governance token, sENA, in order to address a perceived misalignment between protocol growth and direct benefits for sENA holders.
Redirecting Ethena’s Revenue to Strengthen Governance
In their proposal, Wintermute highlighted a major issue: while the protocol generates significant revenue, sENA holders do not directly benefit from it. According to the company, this situation creates an explicit discrepancy between platform growth and the interests of sENA holders. The goal of the proposal is to better align revenues with stakeholder incentives, ensuring that the prosperity of the protocol benefits its community.
The Ethena Foundation quickly responded, emphasizing the potential benefits for the entire ecosystem. In their response, they clarified that 100% of future revenue generated by the protocol would be allocated to the enrichment of the protocol itself, without sharing with external development entities such as Ethena Labs. This decision reinforces the foundation’s commitment to ensuring that protocol resources remain under the control of its governance, promoting transparency and the autonomy of the ecosystem.
Increased Governance and Demanded Transparency
Wintermute also called on the foundation to be transparent about the history of revenue allocations. This request aims to ensure that past profits have truly served the protocol and that future flows will continue to be used solely for the benefit of the protocol, under the governance of ENA and sENA holders.
The approval of this proposal marks a significant step in how Ethena envisions its governance and revenue allocation. By placing sENA holders at the center of priorities, the protocol aims to revitalize its community involvement and strengthen trust in its governance structure.
The activation of the fee switch, scheduled for the end of November, is expected to be a decisive moment for the Ethena community, laying the foundation for a more balanced relationship between the protocol and its stakeholders. This development could serve as an example for other decentralized projects facing similar challenges in revenue sharing and participatory governance.
