The Ether.fi community has taken a decisive step that could reshape confidence in its native token and deepen its role in the decentralized finance ecosystem.
Summary
- Ether.fi DAO approved a $50 million buyback program for ETHFI tokens.
- The initiative will be funded through treasury revenues and transparently executed on-chain.
- The move received 99% community support.
Ether.fi’s governance community has voted to authorize a large-scale token buyback aimed at stabilizing ETHFI’s market price and reinforcing long-term holder value.
According to a post by the project on X dated Nov. 5, the Ether.fi DAO approved the Treasury Deployment Buy-Back Program through a near-unanimous vote.
Governance approval and buyback framework
The buyback program, approved with 99% support, authorizes the Foundation to deploy up to $50 million from its treasury to repurchase ETHFI tokens trading below $3. The initiative will continue until the cap is reached or the price exceeds that threshold.
The Foundation said it plans to scale buybacks based on protocol revenues, which are derived from staking operations and DeFi integrations. All purchases will be recorded on-chain and reported publicly through its Dune dashboard. The strategy is similar to previous buybacks that enhanced liquidity depth and helped recover prices by 15% to 20%.
The proposal follows a series of successful liquidity interventions, with Ether.fi positioning the program as a mechanism to “increase the proportion of protocol revenue directed toward buybacks while ETHFI trades below this threshold.”
Ecosystem growth and market outlook
Ether.fi has been expanding rapidly across DeFi and institutional channels. Its ecosystem now exceeds $700 million in total value locked, supported by integrations with Plasma, Aave, and FalconX. The platform’s “defibanking” initiative, anchored by the Ether.fi Cash Card, has processed millions in daily spend volume, offering cashback rewards and fiat transfer options.
The positioning of Ether.fi as a DeFi-native banking alternative has been strengthened by partnerships with Visa, Sharplink, EigenCloud, and Anchorage Digital. Despite uncertain market conditions, analysts point out that the buyback authorisation shows investor confidence and a sustainable revenue model.
Given that November has historically been a better month for cryptocurrency markets, Ether.fi’s timing may encourage ETHFI demand to rise again during ongoing DeFi recovery cycles.