BlockBeats News, October 31st, According to The Block, the Ether.fi community has put forward a proposal to allocate up to 50 million US dollars from its treasury for the repurchase of ETHFI tokens, to be executed when their trading price falls below 3 US dollars, making it the latest major DeFi protocol to adopt a buyback strategy as a liquidity and price support tool. According to a governance proposal released on Thursday, the plan authorizes the Ether.fi Foundation to conduct open market purchases of ETHFI when the spot price is below 3 US dollars.
As of October 31st, ETHFI has dropped over 89% from its 2024 peak, with a trading price of approximately 0.93 US dollars, within the proposed buyback range. Buybacks have become the preferred method for protocols with significant fee revenue but weak secondary market demand, a practice similar to traditional corporate finance strategies. However, Ether.fi’s strategy ties the buyback trigger directly to a price threshold rather than a fixed time interval or budget plan.
