The governance token’s price reacted sharply over the weekend. $ENA traded at $0.2601 at around 19:50 UTC on September 28, 2026, down 9.1 percent in 24 hours but up 26.5 percent over seven days (our own reading on CoinGecko). The weekly gain therefore still stands; the daily loss eats part of it back.
$ENA emissions: how incentives fell 85 percent since the 2024 airdrop
The 85 percent figure describes the end of a long wind-down, not a sudden cut. According to Crypto Briefing, Ethena has paid out more than $750 million in rewards since launch (Estefano Gomez, September 26, 2026). That money was the fuel for growth over the first two years.
To understand why the protocol is now putting this lever away entirely, look at the revenue side. Ethena’s income depends on funding costs in the derivatives market. When those cool off, paying for further growth with your own tokens becomes expensive, because the subsidy is no longer covered by current earnings. That cooling is precisely the reason Ethena itself gives.
Delta-neutral yield: where the sUSDe rate really comes from
Delta-neutral means a position is hedged against price moves: every unit of cryptocurrency held is matched by an equally large opposing position in the derivatives market, so that a rising or falling price barely changes the value of the overall position. That is exactly how $USDe is built. Behind the token sit yield-bearing ether tokens, Bitcoin and dollar tokens, and against them stand short positions in perpetual futures.
The return comes from two sources. The first is the yield on the staking tokens posted as collateral. The second is the funding rate, the balancing payment that flows regularly between the long and short side on perpetual futures. As long as more capital is betting on rising prices, the long positions pay the short side, and Ethena sits on the receiving end. This mechanism is the real engine, and it was so before the announcement too. How it works out in detail is broken down in our piece on the origin of the $USDe yield.
Funding rate and sUSDe yield: around five percent, but not guaranteed
The decisive question for holders is how much is left once the subsidy falls away. One documented reference point: the support pages of the provider Eco listed roughly 5.01 percent annual yield for sUSDe as of September 15, 2026, describing a marked compression against the double-digit figures of previous years. That number is a snapshot, not a commitment.
What matters is the direction of the swing. The yield is high when funding costs are high, and that is typically the case in phases of rising prices and crowded long positioning. When sentiment turns, the rate falls, and in exceptional cases it can go negative. For such phases Ethena holds an insurance fund, which according to the same source stood at $61 million in March 2026, at a circulating supply of $5.6 billion at the time. That is a buffer, not a guarantee.
From this follows a plain insight for your own planning: a yield that hangs on market sentiment is no substitute for a fixed-term deposit. Anyone using dollar tokens as a yield component should know the terms of the alternatives rather than rely on a single number. An overview of the providers and their conditions is in our comparison of staking platforms.
$USDe supply shrinks from $15 billion to $4.9 billion
The subsidy worked while it ran, and its wind-down can be read off the size of the token. At the peak in October 2025, roughly $15 billion in $USDe was in circulation. At the end of August 2026 the figure was below $5 billion, a fall of more than 65 percent (Crypto Briefing, September 26, 2026).
Our own reading on CoinGecko on September 28, 2026 confirms that order of magnitude: $USDe supply stood at roughly 4.90 billion tokens at a price of $0.9998. Of sUSDe, a good 1.04 billion units were in circulation, at a price of $1.25 and therefore a market value of around $1.30 billion. About a quarter of the stock is staked.
The $1.25 price for sUSDe follows from how the token is built. sUSDe pays nothing out. The token becomes more expensive relative to $USDe the more yield has accrued. From the gap between 1.00 and 1.25 you can read that roughly 25 percent in yield has flowed into the token since launch. This calculation comes from the price data above and is not a forecast. Anyone posting sUSDe against lending rates is therefore always working with a moving figure.
The $ENA buyback from $7.5 billion in $USDe supply
The second half of the switch concerns the governance token. A buyback tied to the size of the stablecoin takes the place of the distribution. A governance proposal adopted in September 2026 sets the first threshold at $7.5 billion in $USDe supply. If supply rises above it, 95 percent of the protocol’s net proceeds flow into open-market purchases of $ENA (Crypto Briefing, September 26, 2026).
Measured against the $4.90 billion of September 28, 2026, some $2.6 billion is missing to reach that threshold, about 53 percent above today’s supply. That is the point at which the new mechanism takes effect at all. Until then $ENA carries the switch without the buyback, and it is precisely this gap that explains why the market has not read the news uniformly.
BaFin and MiCAR: how Ethena GmbH was wound up in Germany in 2025
Here lies the part of the story that weighs more heavily for investors in Germany than any yield figure. $USDe was initially issued in Europe by Ethena GmbH, a German company. The firm used a transitional provision of the EU Markets in Crypto-Assets Regulation, MiCAR for short, filed an authorisation application with BaFin in July 2024 and withdrew it on April 3, 2025. The procedure thus ended without authorisation.
The supervisor drew the consequence. On April 15, 2025 BaFin ordered the wind-down of the authorisation-requiring business in $USDe tokens. On June 25, 2025 it set the redemption process in motion: holders could redeem their tokens from June 25 to August 6, 2025, for 42 calendar days, and exclusively against the dollar token USDC (BaFin, consumer notice of June 25, 2025). It was the first measure with which BaFin enforced MiCAR.
This history forms the frame German holders stand in today. It is not thereby closed. The protocol itself remains active, the token exists globally, and it is traded. What has fallen away is the European issuer with authorisation.
No redemption claim in Germany: the consequences for your $USDe holdings
An authorised issuer under MiCAR must take the token back at any time and at par. That claim is the core of consumer protection on dollar tokens, and in the case of $USDe it is no longer enforceable against a German company for German holders after the 2025 wind-down. Anyone holding the token today holds it through routes outside German supervision.
In practice that means three things. Redemption runs through the market, that is, through prices on a trading venue, and not through a statutory claim. The quality of the backing remains a question of trust in the protocol’s reports. And availability depends on the platform through which you hold the token, which is the most sensitive point in stressed phases.
Tax: sUSDe income between investment income and private disposal
The tax treatment of sUSDe is no side issue, because it decides how much of five percent reaches you. Two frameworks come into question, and which applies depends on how the token is classified in the individual case.
The first framework is Section 20 of the German Income Tax Act, that is, investment income with flat-rate withholding tax of 25 percent plus the solidarity surcharge. The second is Section 23, the private disposal transaction: there a holding period of one year applies, after which a gain remains tax-free, and within the year an exemption threshold of €1,000 for the sum of all such gains in the calendar year. Because sUSDe pays nothing out and the return arises solely through the rising token price, classification as a disposal gain is the obvious reading, but it is not thereby settled.
Only one thing is solid at this point: the question belongs settled before the next sale, not after, and it belongs put to a tax adviser. What you can do yourself is keep the records clean, documenting every acquisition, every swap and every date. Every acquisition, every swap and every date belong documented while the transactions are fresh.
Worked example: 10,000 $USDe at five percent over one year
An example makes the order of magnitude tangible. It uses the snapshot of roughly 5 percent documented above and is a model calculation, not an expectation. Anyone holding 10,000 $USDe in sUSDe and staying at that rate for a year would arrive at about $500 in pre-tax income.
If that amount falls under Section 23 and you sell after more than a year, it remains tax-free. If you sell within the year, the €1,000 exemption threshold applies, so that at this amount and with no further such gains in the year no tax arises either. If instead it falls under Section 20, some $125 would be due at 25 percent withholding tax, leaving about $375. The spread between $500 and $375 is not a detail but a quarter of the income.
Two items are still missing from this calculation, and both weigh on the result. Currency risk between the US dollar and the euro hits you in full, because $USDe is pegged to the dollar and not to the euro. On top come the fees of the access route, which diverge sharply by platform and network.
$USDe without $ENA incentives: the key points for your decision
- Settle your access route. Check which platform you hold $USDe through and which supervisor it answers to, because there has been no redemption claim against a German issuer since 2025. Which houses in Europe work with authorisation is shown in our overview of regulated crypto exchanges.
- Measure the yield against alternatives. From October the funding rate alone carries the return, and it fluctuates. Set the roughly 5 percent against the terms of other providers, for instance in the comparison of lending providers.
- Raise the tax question before the sale. The difference between Section 20 and Section 23 costs a quarter of the income in the example above. Document every transaction and have the classification settled, supported by a tax tool.
(As of September 28, 2026. This article is not investment advice. Prices and fee structures change; check the terms with the provider before you buy.)
