On October 31st, as per The Block, the Ether.fi community has presented a proposal to allocate a maximum of 50 million US dollars from its treasury for the repurchase of ETHFI tokens. This repurchase will be carried out when the trading price of ETHFI falls below 3 US dollars, making it the latest significant DeFi protocol to adopt a buyback strategy as a means of providing liquidity and supporting the price. According to a 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 US dollars. As of October 31st, ETHFI has seen a decline of over 89% from its 2024 peak, with a trading price of approximately 0.93 US dollars, which is within the proposed buyback range. Buybacks have become the preferred approach for protocols that generate significant fee revenue but face weak secondary market demand. This practice is similar to traditional corporate finance strategies. However, Ether.fi’s strategy directly links the buyback trigger to a price threshold rather than a fixed time interval or budget plan.
