Ether.fi DAO Proposes $50M ETHFI Buy-Back Program To Support Token Stability

In Brief

Ether.fi’s DAO has proposed a $50 million treasury-backed ETHFI buy-back program to support token stability when the price is below $3.

Decentralized Ethereum staking protocol, Ether.fi announced that its decentralized autonomous organization (DAO) has introduced a proposal authorizing the Foundation to use a portion of its treasury to conduct buy-backs of ETHFI tokens while the market price remains below $3. The proposed buy-backs may total up to $50 million. The initiative aims to continue accumulating ETHFI and to increase the share of protocol revenue directed toward buy-backs during periods when the token trades under this price threshold.

Earlier buy-back programs implemented by the Foundation have contributed to supporting ETHFI liquidity, enhancing market depth, and promoting token stability, as referenced in previous DAO proposals #8 and #10. Building on that structure, the new proposal establishes defined parameters for treasury deployment and governance oversight, while maintaining alignment between protocol performance and tokenholder interests.

Under the proposal, the Foundation would be permitted to execute ETHFI buy-backs on open markets or designated on-chain venues only when the token’s spot price is below $3. The program would have an overall limit of $50 million in equivalent USD value, funded from the treasury.

Buy-backs would begin upon DAO approval and continue until the total authorized cap is reached, the Foundation determines the program has been fulfilled, or a future governance decision modifies or ends it.

The Foundation may also adjust the proportion of protocol revenue used for buy-backs while the token remains under $3, provided total spending stays within the approved limit. All transactions conducted under the program will be recorded on-chain and made publicly accessible through the Ether.fi Dune dashboard.

The voting period for the proposal will last four days and will take place on the Snapshot platform. Participants will have three options when casting their votes: to approve the proposed buy-back program, to reject it, or to abstain from making a decision. If the proposal is approved, the buy-back program will take effect immediately, provided that the specified market price condition is satisfied.

Ether.fi: A Decentralized Ethereum Staking Protocol With Liquid Staking And Governance Features

The protocol operates as a decentralized Ethereum staking protocol that enables users to stake their ETH while retaining full control over their private keys. The platform issues a liquid staking token known as eETH, which can be utilized across various decentralized finance (DeFi) platforms and is also involved in EigenLayer to earn additional restaking rewards

Its native token, ETHFI, functions as the governance token, granting holders the ability to participate in decision-making processes related to the protocol’s development and operations.

Recently, Ether.fi announced its expansion into the HyperLiquid ecosystem, with plans to launch a new staking token referred to as beHYPE. As part of this initiative, an initial multisig-secured vault named preHYPE has been introduced to accept early deposits prior to the token’s full release.