Ether.fi Proposes $50M ETHFI Token Buyback Approval

The Ether.fi community has launched a proposal to utilize up to $50 million for ETHFI token buybacks, targeting prices below $3, with voting concluding November 4, 2025.

This initiative underscores Ether.fi’s commitment to token stability, potentially impacting market sentiment and liquidity for governance tokens.

Ether.fi’s $50M Buyback Proposal and Its Implications

Ether.fi proposes a $50 million ETHFI token buyback policy. It is designed to trigger when the token price falls below $3. According to Ether.fi Foundation’s DAO Governance Documentation, “The Foundation is authorised to execute ETHFI buy-backs from open markets or designated on-chain venues when the token spot price is strictly below US $3.00. The total cap for this program is US$50 million (equivalent USD value) sourced from the treasury.” This proposal, managed by the Ether.fi Foundation, utilizes surplus revenue for funding. Such initiatives are critical in addressing liquidity concerns and stabilizing market dynamics for governance tokens.

Immediate market effects are anticipated if the buyback commences, potentially enhancing market perception around ETHFI. The use of surplus revenue from staking and operations highlights Ether.fi’s financial robustness, distinguishing it as a proactive measure to control its token’s price through deliberate treasury management.

100% community approval underlines confidence in the proposal, showcasing strong DAO support. No commentary from industry leaders, regulators, or media, but community voting has shown significant consensus. This initiative mirrors similar buybacks by other DeFi platforms, signaling a common strategy in the space. More insights can be gathered from the EtherFi DAO Proposal for Treasury Deployment and Buy-Back Program.

Market Analysis: Price Trends and Strategic Significance

Did you know? Ether.fi’s strategy echoes the Aave DAO’s recent $50 million buyback. Such coordinated efforts suggest DeFi platforms increasingly leverage buybacks to stabilize token valuations and market perceptions.

As of the latest figures from CoinMarketCap, Ether.fi’s current price stands at $0.97, with a market cap of $545.68 million and a fully diluted market cap at $967.33 million. Over the last 24 hours, trading volume reached $68.39 million, despite a -28.00% daily decline. These figures reflect a 24-hour price dip of -3.25% and a significant 46.01% drop over 30 days.

According to Coincu research, Ether.fi’s buyback strategy aligns with historical trends in DeFi, where buybacks are commonly used to build investor confidence. Such strategies not only leverage financial strength but position projects favorably against potential market downturns, highlighting the importance of strategic financial maneuvers within volatility-laden crypto markets. To stay updated with similar trends in the crypto world, you can follow Live Bitcoin News Updates and Insights.