Ether.fi DAO proposes $50M ETHFI buyback as token trades below $1; DeFi buybacks prime $1.4B in 2025, says CoinGecko.
Ether.fi DAO has launched a brand new proposal to allocate as much as $50 million from its treasury for ETHFI token buybacks.
This system would start as soon as authorized by governance and would activate solely when the token trades beneath $3. This initiative locations Ether.fi amongst a rising variety of DeFi protocols utilizing buybacks as a technique to assist value ranges and scale back token provide during times of low market demand.
Ether.fi Proposes Efficiency-Based mostly Buyback Mannequin
The proposal outlines a versatile construction for repurchasing ETHFI tokens within the open market, with a cap of $50 million.
The buybacks shall be triggered solely when the token value is beneath $3, and this system will stay lively till the cap is reached, the muse ends it, or the DAO votes to vary it.
This technique connects the buyback exercise to market value slightly than to a hard and fast schedule. In line with the governance publish, the Ether.fi Basis plans to develop this system as protocol income grows. It acknowledged that “the Basis intends to progressively develop buy-back capability in proportion to protocol revenues.”
The buyback mechanism will depend on open market purchases, with transactions recorded on-chain and made publicly obtainable through Dune Analytics. This can mark Ether.fi’s third buyback initiative, following comparable strikes in Proposals #8 and #10, aimed toward supporting market stability.
ETHFI Token Falls Inside Buyback Vary
As of October 31, ETHFI was buying and selling round $0.93, greater than 89% beneath its 2024 excessive. This value stage places the token inside the buyback vary outlined within the proposal. The decline displays decrease demand within the secondary market, regardless of the protocol’s rising income base.
Ether.fi permits customers to stake ETH and obtain a liquid token whereas incomes rewards. The challenge at present holds round $10 billion in complete worth locked and experiences annualized protocol charges of about $360 million, primarily based on information from The Block.
With these metrics, Ether.fi has the capital power to assist a big buyback with out affecting core operations. The proposal additionally goals to align token worth with protocol efficiency and assist long-term market confidence.
DeFi Buybacks Attain $1.4 Billion in 2025
The Ether.fi proposal comes as extra DeFi platforms flip to buybacks. A latest CoinGecko report famous that complete buyback volumes in 2025 have exceeded $1.4 billion. These efforts are sometimes funded straight via protocol income.
Tasks resembling Uniswap, Aave, and Hyperliquid have all launched or proposed comparable buyback methods. Aave DAO lately introduced a $50 million yearly program, whereas NFT platform OpenSea plans to commit 50% of income to a buyback mannequin.
This shift displays a broader transfer towards treating protocols as revenue-generating companies. Many groups now give attention to utilizing earnings to extend tokenholder worth, scale back circulating provide, and assist value stability throughout DeFi markets.