TL;DR
- Ether.fi DAO proposes buying back up to $50 million in ETHFI below $3.
- ETHFI trades at $0.93, significantly below the $3 activation threshold.
- Protocol generates $360M annualized fees, supporting the buyback program.
Ether.fi DAO proposed up to $50 million in ETHFI buybacks when the token trades below $3, the governance post said. The plan would allow the Foundation to purchase ETHFI on the open market until the cap is met or governance reverses course.
The proposal ties buyback activation to a price threshold rather than fixed schedules, a mechanism aimed at using surplus fees to support token markets. ETHFI traded near $0.93 on October 31, 2025, well under the $3 trigger. The DAO published onchain reporting and a four-day Snapshot vote to approve the program.
Buybacks and protocol finance
Protocols recorded over $1.4 billion in buybacks for 2025 as projects allocate fee income to token repurchases, CoinGecko data shows. Buybacks serve as a cash-management tool for projects with steady fee revenue and soft market demand. Ether.fi reports about $10 billion in TVL and roughly $360 million in annualized fees; figures support a sizable buyback program.
The Ether.fi plan would start immediately after approval and continue until one of three conditions occurs: the $50 million limit, a Foundation decision to stop, or a new governance vote. The DAO intends to expand buyback capacity in line with protocol revenues while ETHFI remains under $3. The protocol previously ran two smaller liquidity-support initiatives under Proposals #8 and #10.
Market reaction to buyback news varies as traders weigh supply reduction against long-term token use. Other protocols including Aave and OpenSea have proposed or allocated revenue for buybacks in 2025, reflecting a broad trend among revenue-generating projects. Observers expect onchain transparency and regular reporting to shape stakeholder trust.
Governance voters will decide in the coming days, with onchain records available for public review. If approved, the plan would link protocol fee performance to direct market support for token holders. Market participants await clear execution steps soon.
