On February 12, 2024, the Ethena platform unlocked 7.93 million tokens, accounting for 0.25% of its total supply. Remarkably, the token's price remained stable despite the unlock.
Planned Token Unlock
On February 12, Ethena released 7.93 million tokens from its total supply, with 65.66% of tokens still locked. This unlock event did not significantly reduce the token's price, which remained at pre-event levels.
Tokenomics Revision and Its Consequences
In June 2024, Ethena implemented significant changes to its tokenomics, including a 50% lock-up for all token distributions. These adjustments aim to maintain token stability and long-term project success.
Community Reaction and Its Significance
The decision to lock tokens led to dissatisfaction among some users who believe it primarily benefits the team and early investors. This approach also raised concerns about the token's governance role and the alignment of interests between the team and the community.
Despite the initial negative reaction, Ethena's tokenomics strategy appears to stabilize the token price by reducing speculative trading and supporting sustainable growth.
