Crypto News: DeFi Buyback Trend Grows with Etherfi DAO’s $50M ETHFI Proposal

Ether.fi DAO proposes $50M ETHFI buyback as token trades under $1; DeFi buybacks top $1.4B in 2025, says CoinGecko.

Ether.fi DAO has introduced a new proposal to allocate up to $50 million from its treasury for ETHFI token buybacks. 

The program would begin once approved by governance and would activate only when the token trades below $3. This initiative places Ether.fi among a growing number of DeFi protocols using buybacks as a method to support price levels and reduce token supply during periods of low market demand.

Ether.fi Proposes Performance-Based Buyback Model

The proposal outlines a flexible structure for repurchasing ETHFI tokens in the open market, with a cap of $50 million.

The buybacks will be triggered only when the token price is below $3, and the program will remain active until the cap is reached, the foundation ends it, or the DAO votes to change it.

This strategy connects the buyback activity to market price rather than to a fixed schedule. According to the governance post, the Ether.fi Foundation plans to expand the program as protocol revenue grows. It stated that “the Foundation intends to progressively expand buy-back capacity in proportion to protocol revenues.”

The buyback mechanism will rely on open market purchases, with transactions recorded on-chain and made publicly available via Dune Analytics. This will mark Ether.fi’s third buyback initiative, following similar moves in Proposals #8 and #10, aimed at supporting market stability.

ETHFI Token Falls Within Buyback Range

As of October 31, ETHFI was trading around $0.93, more than 89% below its 2024 high. This price level puts the token within the buyback range outlined in the proposal. The decline reflects lower demand in the secondary market, despite the protocol’s growing revenue base.

Ether.fi allows users to stake ETH and receive a liquid token while earning rewards. The project currently holds around $10 billion in total value locked and reports annualized protocol fees of about $360 million, based on data from The Block.

With these metrics, Ether.fi has the capital strength to support a large buyback without affecting core operations. The proposal also aims to align token value with protocol performance and support long-term market confidence.

DeFi Buybacks Reach $1.4 Billion in 2025

The Ether.fi proposal comes as more DeFi platforms turn to buybacks. A recent CoinGecko report noted that total buyback volumes in 2025 have exceeded $1.4 billion. These efforts are often funded directly through protocol revenue.

Projects such as Uniswap, Aave, and Hyperliquid have all launched or proposed similar buyback strategies. Aave DAO recently announced a $50 million yearly program, while NFT platform OpenSea plans to commit 50% of revenue to a buyback model.

This shift reflects a broader move toward treating protocols as revenue-generating businesses. Many teams now focus on using earnings to increase tokenholder value, reduce circulating supply, and support price stability across DeFi markets.

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