Ethena Labs Research has submitted a governance proposal to its community, seeking to restructure the protocol's Risk Committee by reducing the number of voting members from five to three. The proposal, now under a vote by ENA and sENA token holders, aims to create a more agile and accountable governance framework for the USDE stablecoin issuer.
The core argument for the change is operational efficiency. Proponents state that the current five-member structure spreads responsibility too thinly across multiple risk categories without clear ownership. The proposed three-member model would assign specific, non-overlapping domains: one member would oversee DeFi lending exposure, another would manage the Reserve Fund and redemption requirements, and the third would focus on protocol integrations, partnerships, and backing assets.
Ethena Labs Research itself would transition from a direct voting member to a non-voting technical advisory role under the new structure, with final control over electing the three commissioners remaining with the token-holding community. A key collateral objective of the smaller committee is to allow the Ethena Foundation to increase individual member compensation, incentivizing deeper professional dedication and potentially enabling members to hire dedicated staff or develop governance infrastructure like dashboards and simulation tools.
The voting outcome carries practical implications. If approved, the election scheduled for the following week will proceed with a three-seat format. If rejected, the protocol will maintain its original five-member plan. The results are under industry scrutiny, as the chosen structure could influence the system's response speed during periods of volatility in the stablecoin market.
During the voting period, ENA's market activity showed positive momentum. The token's price rose 3.09% to $0.1735, with a 24-hour trading volume of $116.13 million, giving it a market capitalization of approximately $1.38 billion.
