Important Mechanism Activated in Binance-Listed Altcoin: Price Spikes – Here Are The Details

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Bitcoinsistemi2024/11/15 20:00

By:Mete Demiralp

Developers of an altcoin listed on Binance have reported that the activation of the mechanism to distribute fees to users has been approved.

The Ethena Foundation announced that its Risk Committee has approved Wintermute Trading's proposal to enable a fee switch mechanism for the ENA token.

The approval is a significant milestone in aligning the protocol’s growth with the interests of token holders and increasing the usage of sENA.

Following the development, ENA saw a significant price increase. According to Binance data, the token saw an 11% increase at its peak.

Important Mechanism Activated in Binance-Listed Altcoin: Price Spikes – Here Are The Details image 0

Important Mechanism Activated in Binance-Listed Altcoin: Price Spikes – Here Are The Details image 1

Chart showing the rise in ENA price.

Fee Switch is a mechanism within a protocol that directs a portion of the revenue generated by the platform to token holders or other participants. In this case, the Ethena Protocol generates a significant amount of revenue through its USDe stablecoin product, but sENA token holders are currently unable to benefit directly from this revenue. Enabling Fee Switch could change this dynamic by allocating a percentage of the protocol’s revenue to sENA holders.

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The Risk Committee and the Foundation aim to finalize the parameters for fee switch activation by November 30.

The Risk Committee and the Foundation aim to finalize the parameters for fee switch activation by November 30. Uygulamanın kesin mekaniği, aşağıdaki gibi faktörlere odaklanılarak daha sonra belirlenecek:

Revenue Allocation: Determining the percentage of protocol revenue that will be directed to sENA holders.
Distribution Mechanism: Exploring the most effective way to distribute these funds, either directly or through alternative means.
Protocol Maturity: Balancing protocol growth and maintaining competitive returns for sUSDe.

*This is not investment advice.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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