Stablecoin USDe issuer Ethena Labs has come to the fore with allegations of unfair staking. At this point, Ethereum-based synthetic dollar protocol Ethena Labs allegedly participated in one of the recent staking events using 180 million Ethena (ENA) tokens.
Cryptocurrency researcher Nomad claimed in his post that the Ethena team participated in the Season 3 farming event with 180 million ENA tokens and owned 25% of the total staked ENA (SENA).
Nomad stated that the Ethena Labs team violated ethical values, and warned participants that this move would significantly reduce the rewards of legitimate participants, especially those participating in staking.
Ethena Labs (ENA) denied these claims, saying that the team did not stake sENA to earn rewards.
The Ethena Labs team, who also shared from the X account, wrote:
“We are aware of questions circulating on Discord and X regarding whether investors or the Ethena team are earning Ethereal rewards via sENA using locked tokens.
We would like to reassure our community that no reward-earning locked team or investor tokens, including Ethereal, are ever staked as sENA.
All ENAs sent from the mentioned wallets were unlocked according to the exact vesting schedule outlined in the original token distribution blog post.”
Ethena is a synthetic dollar protocol built on Ethereum that will offer a crypto-specific solution that is not dependent on traditional banking system infrastructure.
We are aware of questions circulating in Discord and X as to whether investors or the Ethena team are earning Ethereal rewards via sENA using locked tokens.
We would like to categorically confirm to our community that absolutely no locked team or investor tokens are staked as… pic.twitter.com/v5SxgDwCTp
— Ethena Labs (@ethena_labs) October 28, 2024
*This is not investment advice.