Ether.fi DAO proposes to use 50 million dollars to buy back ETHFI

The Ether.fi community has proposed a plan to allocate up to $50 million from its treasury for the repurchase of ETHFI tokens, to be executed when its trading price falls below $3, making it the latest major DeFi protocol to adopt a buyback strategy as a tool for liquidity and price support.

According to the governance proposal released on Thursday, the plan authorizes the Ether.fi Foundation to conduct open market purchases of ETHFI when the spot price is below $3. As of now, ETHFI has fallen over 89% from its 2024 peak, trading at approximately $0.93, which is within the proposed buyback range. Buybacks have become the preferred means for protocols with substantial fee income but weak secondary market demand, a practice similar to strategies in traditional corporate finance. However, Ether.fi's strategy will tie the triggering conditions directly to price thresholds, rather than fixed time intervals or budget plans.