Wintermute secures approval to overhaul Ethena’s revenue sharing model

The Ethena Foundation announced on Nov. 15 that the risk committee approved Wintermute’s proposal to overhaul revenue sharing for the Ethena protocol.
The changes, aimed at benefiting staked ENA (sENA) holders, are expected to take effect by the end of November, pending the finalization of implementation details.
Wintermute, a prominent market maker and Ethena backer, suggested the changes to address what it described as a misalignment between sENA holders and the protocol’s revenue-generating success.
The Ethena protocol, which supports the U.S. dollar-pegged stablecoin USDe, has seen substantial revenue growth, but that success has not directly translated into benefits for sENA stakeholders.
Aiming for alignment
In its proposal, Wintermute emphasized the need for better alignment between sENA holders and the protocol’s financial outcomes.
According to the firm:
“The Ethena protocol has achieved significant market traction, yet sENA holders lack a direct connection to this revenue growth”
The proposed changes include introducing a mechanism to allocate a portion of Ethena’s revenue to programs that enhance the utility and value of staked governance tokens. The foundation echoed Wintermute’s concerns and committed to ensuring that future revenues exclusively benefit the protocol.
In a recent update, it clarified that no portion of Ethena’s earnings would flow to external entities or affiliated development groups, such as Ethena Labs. Governance processes will determine any uses of funds beyond operational reserves and rewards for sUSDe holders.
Governance and broader impact
Wintermute’s proposal also called for increased transparency regarding past revenue allocations. The foundation has pledged to adhere to this principle moving forward, ensuring that all earnings remain under community governance through ENA and sENA voting structures.
The Ethena Foundation is collaborating with the risk committee to finalize the mechanics of the new revenue-sharing model. The activation parameters are expected to be in place by Nov. 30.
Ethena’s ecosystem has drawn support from major industry players, including Binance Labs, Fidelity Investments, and Dragonfly, alongside Wintermute. With this latest development, Ethena aims to strengthen the relationship between its governance token holders and its broader protocol performance.
The approval marks a step toward realigning incentives across the Ethena ecosystem, potentially setting a precedent for how governance protocols address stakeholder alignment and revenue transparency.
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