Ethena Labs Proposes Reduction of Risk Committee Members Ahead of New Election

Ethena Labs Research has proposed a plan to reduce the number of votes in the risk committee from five to three members before the next election. This reduction aims to improve risk management efficiency within the Ethena ecosystem, where ENA is currently trading at $0.13 with a market capitalization of $1.06 billion.

Simplify Structure, Enhance Accountability

Ethena Research team believes that reducing the size of the committee allows for more focused and specific distribution of responsibilities. With fewer members, each individual can concentrate on critical areas such as DeFi loan exposure, reserve fund management, exchange requirements, protocol partner integration, and collateral asset valuation. This approach is expected to increase accountability and clarity in risk decision-making.

Increased Compensation for Committee Members

One of the main incentives for reducing the number of members is higher compensation per member. The Ethena Foundation plans to provide greater rewards to each committee member, encouraging them to allocate more substantial resources and higher dedication to their responsibilities. This model emphasizes quality over quantity in selecting governance representatives.

Two Election Scenarios for ENA Holders

If the proposal is approved via voting, ENA and sENA token holders will select three voting members, while Ethena Labs Research will serve as an advisory member without voting rights. If the proposal is rejected, the initial plan to maintain the five-member structure will remain in place. Both scenarios reflect Ethena’s commitment to governance that responds to community voices in implementing the reduction and optimization of the risk committee structure.