Ethena Labs will reduce the number of members on the risk committee in the upcoming elections.

Next week, the Ethena community is expecting an important vote on changes to the project’s governance structure. The Ethena Labs research team has identified a new number of voting representatives on the risk committee as a key element of management optimization that could change the approach to making critical decisions in the project.

Rethinking Committee Size: From Five to Three Members

Ethena Labs Research has proposed revising the composition of the risk committee by reducing it from five voting members to three. This change in the number of representatives is considered a way to optimize the internal management structure. According to Odaily, the team believes that a smaller number of active participants will allow for clearer definition of their specific responsibilities and areas of expertise.

Specialization and Multiplied Compensation as a Result

With the reduction in committee members, it is planned to expand the scope of material incentives for each of them. Ethena Fund intends to significantly increase compensation to attract experienced professionals who are willing to dedicate more resources to the work. Specific areas of responsibility will include monitoring exposure to DeFi lending, managing reserve funds, overseeing buyback requirements, coordinating with partner protocols, and assessing collateral asset quality.

The Role of Advisors and Voting Structure

If the proposal is approved by the community, the new mechanism will involve ENA and sENA token holders selecting three voting members of the college. Meanwhile, Ethena Labs Research will take on an advisory role without voting rights, while still maintaining the ability to influence discussions on critical issues. The team believes that this number of participants will create a more balanced decision-making dynamic.

Alternative Scenario and Future Governance

If the vote does not receive support, the original number of committee members, namely five voting representatives, will remain unchanged. Thus, the outcome of the vote will allow the community to independently determine the optimal number of individuals that best meet the project’s needs in terms of effective risk management and making high-quality strategic decisions.