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Ethena just unlocked nearly 8 million tokens, but surprisingly, the unlock event had little impact on the price.

On Feb. 12, Ethena (ETH) unlocked 7.93 million tokens, accounting for 0.25% of its total supply, with 65.66% of the supply still remaining locked. Surprisingly, the unlock event did not exert downward pressure on the token as it was still trading at the same level before the unlock. However, Ethena price is still trading in the bearish territory, down by 10% over the last 24 hours, according to CoinGecko.

Ethena’s gradual unlocking strategy aligns with the project’s aim of maintaining stability for the token, a goal reinforced by the project’s earlier restructuring of its tokenomics. In June 2024, Ethena introduced a significant overhaul to its tokenomics, which included a 50% lock-up for all airdrop recipients.

This decision, aimed at reducing short-term speculative trading and promoting long-term holding, sparked backlash from some users who felt it favored the team and early investors. The move also raised concerns about the token’s role in governance and the alignment of interests between the team, early investors, and the broader community.

Despite the initial negative reaction, Ethena’s tokenomics seems to be working toward the project’s  objective: stabilizing the price by discouraging immediate selling and ensuring more sustainable growth.