Ethena Will Stop Using Token Incentives to Subsidize USDe Growth Starting at the End of This Month

Ethena Will End USDe Token Incentives by Month End as ENA Touches $0.28

Ethena, the synthetic dollar protocol associated with USDe and ENA, announced on September 26 that all USDe-related token incentives and inflation will stop by the end of the month. The protocol said incentives tied to USDe growth have fallen about 85% since its first airdrop in 2024, and no further incentive issuance will be made after the current month.

Incentives Reach a Final Reduction

The announcement presents the end of incentives as the final stage of a gradual taper. Ethena thanked users who participated in the early growth phase and helped the product reach its current scale. For participants, the main change is that the token subsidy previously used to support USDe adoption will no longer be added to the protocol's distribution schedule.

Market Data and Binance Strategy Link

On the same day, HTX market data showed ENA led the altcoin market and touched $0.28. The move came after Ethena announced on September 25 a partnership with Binance to extend the basis strategy behind USDe from crypto perpetuals to stock perpetuals.

Under the new approach, Ethena buys spot tokenized stock certificates, called bStocks, issued by a Binance affiliate, while hedging exposure by shorting USDT-denominated stock perpetuals on the same platform. The strategy is designed to capture the basis between spot stock exposure and perpetual futures positioning.

What Changes for USDe Growth

With incentives ending, USDe growth will depend more on the protocol's strategy and product adoption than on token subsidies. The shift also removes a known source of inflation tied to USDe, while leaving the newly announced stock perpetual strategy as a visible part of Ethena's next phase.