Ethena Proposes Leaner Risk Committee Structure Ahead of ENA Vote

Key Insights:

• Ethena and sENA holders are voting on reducing the Ethena Risk Committee from five members to three.
• Proposal outlines clearer role assignments and changes to compensation and workload structure.
• ENA Price rose 3.09% with $116.13M volume as governance voting continues across the community.

Ethena Labs Research has submitted a governance proposal to restructure the Ethena Risk Committee, reducing its size from 5 voting members to 3. The proposal comes ahead of the committee’s upcoming election.

It is now under community vote, with ENA and sENA holders responsible for determining the outcome. If approved, the change would alter the governance framework of the USDE issuer by reshaping how risk oversight responsibilities are distributed across the protocol’s internal structures.

The proposal centers on operational efficiency and governance structure rather than protocol design or product changes. Ethena Labs Research confirmed that the vote will determine whether the next Risk Committee election proceeds with three members instead of the current five.

Under the proposed framework, the committee would operate with a narrower membership structure. The Ethena Labs Research would continue in a non-voting advisory role.

Ethena Proposes Leaner Risk Committee Structure

Supporters of the proposal argue that a smaller committee would improve operational efficiency and clarity of governance. According to the submitted proposal, the current five-member structure spreads responsibility across multiple risk categories.

However, it does not assign clear ownership over specific domains. The new structure would divide responsibilities more directly among three members.

Under the proposed model, one member would oversee Ethena’s DeFi lending exposure. The second member would manage the Reserve Fund and redemption requirements. The third member would focus on protocol integrations, partnerships, and backing assets.

The proposal states that this structure would create clearer accountability and reduce overlap in responsibilities.

The submission also notes that with fewer members, tasks are less likely to go unaddressed because of the assumption that another committee member is responsible. Proponents argue that defined domains would encourage more direct engagement across proposals and governance processes.

In addition, the proposal outlines possible changes to the compensation structure. According to the document, a smaller committee would allow the Ethena Foundation to increase compensation for its members. The proposal states that higher compensation could enable members to dedicate more time and resources to governance and risk management activities.

Moreover, supporters claim that some committee participants are willing to hire Ethena-specific team members. They also aim to develop governance infrastructure, such as dashboards and simulation tools, if larger budgets become available. According to the proposal, these resources would support more structured governance operations.

Governance Vote Structure and Committee Transition Process

The proposal requires a majority vote from ENA and sENA holders to pass. If approved, the next election will follow the standard governance format, with token holders electing three voting members to the Ethena Risk Committee instead of five.

Ethena Labs Research will not be eligible as a voting candidate under the new structure. Instead, it will remain in an advisory capacity as a non-voting participant within the committee framework. This structure is intended to separate advisory functions from voting authority while maintaining technical input into governance processes.

If the proposal is not supported by the majority, the governance structure will not change. In that regard, the election of five voting members within the current committee format will be undertaken by the ENA holders.

The proposal also covers prior workload allocation. According to it, in a five-member structure, one or two members would take on most of the duties across various sub-committees. The advocates hold that a smaller, more focused group would share workloads more evenly and enhance operational consistency.

Ethena Price Data Shows Market Growth During Vote Period

At the time of writing, market data shows ENA price trading at $0.1735, posting a 3.09% gain over the past 24 hours. The price chart indicates intraday volatility, with prices declining earlier in the session before recovering later in the day and moving toward the upper end of the trading range.

ENA’s market capitalization stands at $1.38 billion, while the token recorded $116.13 million in 24-hour trading volume, with a volume-to-market-cap ratio of 8.27%, representing low liquidity and ongoing market activity.