The Ethena Foundation said its Risk Committee has determined that parameters for the protocol’s fee switch have been met. The committee is now working through implementation details, which will be shared publicly before ENA holders are asked to vote on the framework.
While no final decision has yet been made, the fee switch represents a significant milestone in Ethena’s governance roadmap.
What the fee switch could mean for stakers
If activated, the fee switch would redirect a portion of Ethena’s protocol revenues to sENA holders. Current revenue stands at around 50–60 million dollars per month, and with roughly 750 million dollars worth of ENA staked, this suggests a potential yield in the range of 4.5% to 15% APR, depending on the share allocated.
These figures remain estimates and will depend on the final governance-approved model.
A shift in ENA token utility
Up to now, staking ENA has not provided direct revenue distribution. Instead, it has been positioned as a way to accumulate airdrop tokens from ecosystem projects such as Ethena Eco, Strata, EtherealDEX, Derive, and Terminal Finance.
If the governance process approves the fee switch, ENA could transition from a governance-focused asset with indirect incentives to a revenue-sharing token, aligning it more closely with holders’ economic interests.
