A buyback strategy has been developed for Ethereum-based ETHFI.

Recently, while fluctuations have been experienced in the cryptocurrency markets, an important buyback proposal has emerged for the Ethereum-focused altcoin ETHFI. The Ether.fi DAO proposed to create a $50 million buyback program that would be activated when the token price falls below $3. This move is drawing attention in the decentralized finance (DeFi) space along with the buyback frenzy anticipated in 2025.

The Ether.fi community has proposed to allocate $50 million from its treasury to buy back ETHFI tokens when the market price is below $3. If the proposal is approved, the program will be initiated immediately. In the proposed buyback plan, the Ether.fi Foundation aims to make open market purchases when the ETHFI price falls below $3. Currently, the ETHFI token is trading at around $1, which represents an 89% loss from its peak in 2024, thereby paving the way for the buyback threshold to come into play.

The buybacks will be conducted based on the protocol's revenues. According to CoinGecko data, the total value of buybacks in the DeFi ecosystem is projected to exceed $1.4 billion in 2025. Many projects, like Ether.fi, aim to directly tie the value of token holders to protocol revenues to enhance liquidity. However, Ether.fi’s approach is notably shaped by price thresholds rather than a timeline.

The Ether.fi Foundation stated that it plans to gradually increase the buyback capacity when the ETHFI price is below $3, using excess revenues to boost market confidence and reduce circulating supply. Voting for the buyback proposal began on Friday via Snapshot, and if approved, this program will be the third buyback initiative following Ether.fi's previous proposals #8 and #10. All transactions will be traceable on-chain and reported through Dune Analytics.