Ethena governance is preparing a tokenholder vote on a proposed ENA fee switch, a mechanism that would direct part of protocol revenue toward ENA buybacks once USDe reaches specified supply thresholds.

The proposal, posted by Ethena Labs Research in collaboration with the Ethena Risk Committee, would replace earlier suggested fee-switch parameters with a milestone schedule tied to USDe circulating supply. Under the framework, the share of protocol revenue used for ENA buybacks would rise as USDe crosses larger supply levels. The proposal says buybacks would begin only if the vote passes and the relevant milestones are met.

The post frames the design as a growth-stage compromise: Ethena wants to keep supporting USDe expansion while adding a clearer path for value accrual to ENA holders. The proposal also says revenue from Ethena's USDe savings business, whitelabel stablecoins, and a new Ethena product line would be covered once the first milestone is reached.

Blockworks Advisory, posting supporting analysis in the governance thread, said it backtested the design across 705 days of realized protocol revenue, USDe supply, and ENA prices. Its analysis describes the switch as a revenue-sharing mechanism rather than an immediate distribution, because the program would remain inactive until supply thresholds are met.

The vote will test whether ENA holders prefer a rules-based buyback schedule over leaving fee-switch activation to later governance decisions.