Introduction to Ether.fi’s $50 Million Buyback Program
The Ether.fi community has taken a crucial step that could reshape trust in its native token and strengthen its role in the decentralized finance ecosystem.
The Ether.fi governance community has voted to approve a large-scale token buyback aimed at stabilizing the market price of ETHFI and strengthening long-term holder value. This initiative is a significant development in the DeFi space, demonstrating the community’s commitment to its native token.
According to a post from the project on November 5th, the buyback program is financed by revenue from the state treasury and implemented transparently in the chain. The move received 99% of community support, indicating a strong consensus among stakeholders.
Governance Approval and Buyback Framework
The repurchase program, approved with 99% approval, authorizes the foundation to allocate 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 this threshold.
The foundation said it plans to scale buybacks based on protocol revenue derived from staking operations and DeFi integrations. All purchases are recorded on-chain and reported publicly via the Dune dashboard. The strategy is similar to previous buybacks that increased liquidity depth and helped prices recover 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 share of protocol revenue used for buybacks while ETHFI trades below this threshold.” This approach demonstrates the community’s proactive stance on managing its token’s value and ensuring the long-term sustainability of the ecosystem.
Ecosystem Growth and Market Prospects
Ether.fi has expanded rapidly across DeFi and institutional channels. Its ecosystem is now worth over $700 million in total, supported by integrations with Plasma, Aave, and FalconX. The platform’s “defibanking” initiative, anchored in the Ether.fi Cash Card, has processed millions of dollars in daily spending volume and offers cashback rewards and fiat transfer options.
Ether.fi’s positioning as a DeFi-native banking alternative has been strengthened through partnerships with Visa, Sharplink, EigenCloud, and Anchorage Digital. Despite uncertain market conditions, analysts point out that the repurchase authorization is evidence of investor confidence and a sustainable earnings model.
Given that November has historically been a better month for cryptocurrency markets, Ether.fi’s timing could see ETHFI demand rebound during ongoing DeFi recovery cycles. As the DeFi space continues to evolve, initiatives like the $50 million buyback program will be crucial in maintaining trust and stability in the market.
For more information on Ether.fi’s $50 million buyback proposal, visit https://crypto.news/etherfi-passes-50m-ethfi-buyback-proposal-2025/
