Ethena Labs, the developer behind the Synthetic Dollar Protocol, is revamping the tokenomics of its native asset, ENA, to enhance its utility. The primary goal of Ethena is to offer a cryptocurrency-based solution for transactions without relying on traditional banking systems, using a synthetic dollar known as USDe. Additionally, the platform provides a dollar-denominated savings tool called “the Internet Bond.”

Currently, users can lock their ENA tokens within Ethena to potentially increase future rewards or in Pendle, a DeFi protocol enabling the tokenization and sale of future yields. Ethena Labs is looking to implement generalized restaking pools for staked ENA in the next phase of the token.

One of the key use cases of this upgrade is to ensure economic security for cross-chain transfers of USDe through the LayerZero DVN messaging system. This marks the initial step in a series of infrastructure enhancements related to the upcoming Ethena Chain and financial applications built on top of it, all of which will benefit from restaked ENA modules.

Moving forward, any user receiving ENA through an airdrop will need to lock a minimum of 50% of the distributed tokens in Ethena, Pendle, or the generalized restaking pools for staked ENA. Earlier this year, Ethena raised $14 million in a seed extension round, with support from investors like BitMEX founder Arthur Hayes, Franklin Templeton, Galaxy Digital, and Binance Labs.

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