Ether.fi DAO proposes to use $50 million to buy back ETHFI

The Ether.fi community has proposed allocating up to $50 million from its treasury to buy back ETHFI tokens when the price falls below $3, making it the latest major DeFi protocol to adopt a buyback strategy as a liquidity and price support tool. According to the governance proposal released Thursday, the plan authorizes the Ether.fi Foundation to purchase ETHFI on the open market when the spot price falls below $3. As of October 31, ETHFI had fallen more than 89% from its 2024 high, trading at around $0.93, within the proposed buyback range. Buybacks have become a preferred method for protocols with substantial fee revenue but weak secondary market demand, a practice similar to traditional corporate finance strategies. However, Ether.fi's strategy directly links the trigger condition to a price threshold, rather than a fixed time interval or budget plan. (The Block)