Ethena has distributed more than $800 million in rewards across its USDe ecosystem since the stablecoin launched in early 2024. The milestone coincides with the protocol's transition away from token incentives toward a revenue-funded model.
The bulk of the rewards flowed to users who staked USDe into sUSDe, the protocol's staked version, with additional rewards distributed for various ecosystem activities. Research estimates place the total at more than $750 million since launch, aligning with Ethena's claim.
End of Token Incentives
As of September 30, 2026, ENA token incentives for USDe stakers were fully discontinued. The wind-down was gradual, with incentives cut by approximately 85% since 2024 before phasing out entirely.
Yield on sUSDe has not disappeared. Average annual percentage yields hovered around 5% in Q3 2026, now standing without token rewards on top.
Supply Volatility and Recovery
USDe's circulating supply peaked at approximately $15 billion in October 2025, but fell below $5 billion by late August 2026. By mid-October 2026, supply stood at around $4.94 billion.
Revenue-Funded Buyback Mechanism
Ethena approved an ENA fee switch that allows buybacks funded by up to 95% of eligible net revenues. However, the mechanism only activates once USDe supply reaches specific thresholds, with the first set at $7.5 billion. At current supply levels, USDe would need to grow by more than $2.5 billion before triggering the buyback feature.
Ecosystem Expansion
During 2026, Ethena expanded USDe integrations across decentralized finance platforms, including expanded rewards on Aave V4 and new partnerships with Morpho. The protocol also introduced beta features for Ethena Pay to boost user engagement.
