Wintermute, a crypto market maker, has put forth a proposal to introduce a fee switch in the Ethena protocol. This proposal aims to address the lack of transparency surrounding revenue distribution for ENA token holders within the protocol. Wintermute points out that there is no clear framework in place to explain how ENA holders can benefit from the earnings of the protocol, despite the significant revenue generated by Ethena’s USDe stablecoin.
The proposal suggests that Ethena’s Risk Committee should consider allocating a portion of the protocol’s revenue to sENA token holders. However, specific details on how this revenue will be distributed have not been provided in the proposal. Instead, Wintermute recommends that the committee establish clear benchmarks that must be met before revenue distribution can be activated. These benchmarks include metrics like the circulating supply of USDe, average revenue levels, APY spread, and USDe adoption on major platforms.
Furthermore, Wintermute’s proposal calls for a more detailed explanation of Ethena’s current revenue distribution model. This request stems from concerns about potential conflicts of interest between equity holders and token holders within the protocol. The proposal aims to determine if there is a “dual-class” structure in place at Ethena and if revenue has been exclusively reserved for development purposes.
Since the implementation of this proposal could have a significant impact on Ethena’s ecosystem, it will require approval through a community vote. Wintermute’s proposal highlights the need for transparent revenue guidelines to ensure fair revenue sharing among sENA token holders as Ethena continues to grow and expand its market presence.
