Ether.fi Approves $50 Million ETHFI Buyback Proposal

The Ether.fi community has made a significant decision that could enhance confidence in its native token and strengthen its presence in the decentralized finance (DeFi) ecosystem. The Ether.fi governance community has voted to implement a major token buyback aimed at stabilizing the market price of ETHFI and providing long-term value for holders.

Key Takeaways

The Ether.fi community has approved a $50 million buyback program for the ETHFI token.
The initiative received a 99% vote in favor, designed to stabilize token price and enhance holder value.
Buyback program funding will come from protocol revenues and is aimed primarily at tokens trading below $3.
Ether.fi's ecosystem has surpassed $700 million in total value locked, bolstered by key partnerships.
The buyback is seen as a confidence booster for investors amidst an uncertain market.

Ether.fi DAO declares $50M buyback for ETHFI

In a post made on X on November 5, it was announced that the Ether.fi DAO has ratified the Treasury Deployment Buyback Program through an overwhelming vote.

Approval of the Buyback Program

The buyback initiative received a remarkable 99% approval rating, allowing the Foundation to allocate up to $50 million from its treasury to repurchase ETHFI tokens currently trading below $3. This program will proceed until either the financial limit is reached or the token price climbs above that threshold.

https://t.co/gbHcksxzp2 DAO approves $50M $ETHFI buyback proposal. https://t.co/SoSZiADHSe pic.twitter.com/c4lDdRwy5A — ether.fi (@ether_fi) November 4, 2025

The Foundation intends to scale these buybacks according to protocol revenues generated from staking activities and DeFi integrations. Every purchase will be documented on-chain and made publicly accessible via its Dune dashboard. This strategy mirrors previous buybacks that improved liquidity depth and helped elevate prices by 15% to 20%.

This proposal follows a series of successful liquidity interventions and positions the program as a way to “increase the proportion of protocol revenue directed toward buybacks while ETHFI trades below this threshold.”

Expansion and Market Expectations

Ether.fi is experiencing rapid growth within DeFi and institutional channels. The platform's ecosystem now boasts over $700 million in total value locked, facilitated by partnerships with Plasma, Aave, and FalconX. Its “defibanking” initiative, supported by the Ether.fi Cash Card, has seen millions processed in daily transactions, providing cashback rewards and fiat transfer capabilities.

The strengthening of Ether.fi's role as a DeFi-native banking alternative has been bolstered by collaborations with major entities like Visa, Sharplink, EigenCloud, and Anchorage Digital. Despite fluctuating market conditions, analysts believe that the authorization of the buyback indicates strong investor confidence and a viable revenue model.

As November has historically been a favorable month for cryptocurrency markets, Ether.fi's timing could potentially stimulate a rise in ETHFI demand during the ongoing recovery cycles in DeFi.