The Ethena group is at the moment contemplating a proposal from cryptocurrency market maker Wintermute to allow charge switching throughout the protocol.
In its November 6 proposal, Wintermute highlighted that the income distribution of Ethena's ENA tokens is just not clear. Market makers say there is no such thing as a clear framework that explains how ENA holders can profit from the protocol's revenues or whether or not there are plans to allocate a portion of the revenues to those holders. identified.
Wintermute highlighted that the Ethena protocol has established vital actual returns, indicating product market match for USDe (Artificial Greenback Stablecoin), which has a market capitalization of over $2.8 billion. This achievement means that sENA token holders ought to have the chance to learn from the protocol's progress, argues Wintermute.
Proposal overview
Wintermute’s proposal recommends that Ethena’s danger committee think about allocating a portion of the protocol’s income to sENA, a staked model of the ENA token. Nevertheless, the proposal doesn’t present particular particulars concerning income allocation.
As an alternative, Wintermute's proposal asks the fee to create a framework detailing benchmarks that Ethena should meet earlier than income sharing is feasible. Really useful standards for these benchmarks embrace the circulating provide of USDe, the protocol's common return degree, the unfold between USDe's Annual Share Yield (APY) and market rates of interest, and the adoption of USDe on main distribution platforms akin to centralized exchanges. Consists of indicators akin to
Moreover, Wintermute's proposal requires a extra exact clarification of Ethena's current revenue-sharing mannequin. This demand is pushed by considerations in regards to the “twin class” construction of the cryptocurrency business, the place the pursuits of stockholders can battle with the pursuits of token holders or the protocol itself.
This proposal goals to find out whether or not such a construction exists inside Ethena and whether or not protocol revenues are reserved solely for improvement.
Provided that this transformation might have a big affect on Ethena's ecosystem, this proposal should be accepted by a group vote.