The Ether.Fi community has launched a governance proposal for a substantial token buyback program, aiming to allocate up to $50 million from its treasury to repurchase ETHFI tokens when the price falls below $3. This initiative is part of a broader wave of buyback activities in the DeFi sector, designed to bolster token value and market confidence.
A four-day Snapshot vote will determine approval, after which the Ether.Fi Foundation will automatically execute open-market purchases if the price threshold is met. The buyback will continue until one of three conditions is fulfilled: the $50 million cap is reached, the foundation terminates the program, or a future governance vote alters the plan. All transactions will be transparently recorded on-chain and displayed via the ether.fi Dune dashboard.
This proposal builds on past successes with DAO proposals 8 and 10, which were credited with improving liquidity and price stability. The foundation also aims to scale buyback capacity in line with protocol revenues, directing surplus income toward repurchases to reduce circulating supply and strengthen the token economy.
The move aligns with a growing DeFi trend, as seen with dYdX's experimental $5–10 million DYDX buyback program through January 2026, Chainlink's Reserve adding 64,445 LINK tokens (its largest acquisition since August), World Liberty Financial's 100% buyback-and-burn for WLFI, and Pump.fun repurchasing over 3 billion PUMP tokens worth nearly $19.6 million on Solana.
At the time of reporting, ETHFI was trading around $0.94, down more than 6% on the day, with technical analysis indicating a potential breakout above $1.05 could target resistance levels near $1.26 or higher.
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