Ether.fi DAO proposes $50 million ETHFI buyback as DeFi’s repurchase wave tops $1.4 billion

The Ether.fi community has introduced a governance proposal to authorize the Ether.fi Foundation to execute open-market purchases of its ETHFI token, up to a $50 million cap, specifically when the spot price is under $3. This move aligns with a broader DeFi trend where protocols with strong fee income are using buybacks to support token value, a strategy echoing traditional corporate finance. The buyback program will activate upon DAO approval and continue until the $50 million limit is reached or a subsequent vote terminates it. Ether.fi, a liquid restaking protocol with about $10 billion in TVL and $360 million in annualized fees, emphasizes that this initiative aims to strengthen market confidence and reduce circulating supply. This follows a larger trend where DeFi buybacks have surpassed $1.4 billion this year, driven by protocols like Uniswap and Aave, signaling a shift toward "protocol-as-business" models that reinvest revenue to bolster tokenholder value.

(Source：The Block)