Ether.fi DAO Proposes $50 Million ETHFI Buyback as DeFi’s 2025 Repurchase Wave Surpasses $1.4 Billion

Ether.fi, a leading Ethereum-based restaking protocol, has put forward a proposal to allocate up to $50 million from its treasury for buying back its native token, ETHFI, whenever it trades below $3. The move makes Ether.fi the latest major DeFi project to use token repurchases as a mechanism for market support and community alignment.

Ether.Fi DAO Proposal: Treasury Deployment for ETHFI Buy-Back Program

Proposal Summary This proposal authorises the Foundation to utilise a portion of the treasury to conduct buy-backs of ETHFI tokens while the market price is below US $3, up to a total amount of US $50 million. The goal is to continue to accumulate ETHFI and increase the proportion of protocol revenue directed toward buy-backs while ETHFI trades below this threshold. Background & Rationale Previous Foundation buy-back programs have successfully supported ETHFI liquidity, market depth, and token…

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The governance proposal, released Thursday, empowers the Ether.fi Foundation to execute open-market purchases while ETHFI’s price remains under the set threshold. The token has fallen roughly 89% from its 2024 high, currently trading near $0.93 as of October 31, according to data.

Under the proposed plan, the buyback program would begin immediately upon DAO approval and continue until one of three conditions is met:

1. The $50 million cap is reached.
2. The foundation declares the program complete.
3. A future governance vote modifies or terminates it.

In the proposal, the foundation noted it intends to “progressively expand buy-back capacity in proportion to protocol revenues, particularly while ETHFI remains below $3,” linking the initiative directly to Ether.fi’s financial performance. All repurchases will be transparently recorded on-chain and monitored via the project’s Dune Analytics dashboard.

If passed, this would mark Ether.fi’s third buyback program, following similar efforts under Proposals #8 and #10 aimed at supporting liquidity and stabilizing token prices.

Part of a Growing DeFi Trend

Ether.fi’s move comes amid a broader surge of buyback activity across the decentralized finance (DeFi) sector. According to CoinGecko, total protocol token buybacks in 2025 have exceeded $1.4 billion, reflecting a maturing shift toward “protocol-as-business” models—where DeFi projects reinvest earnings to enhance tokenholder value.

Earlier this month, Aave DAO proposed a $50 million annual buyback funded directly from protocol revenues, while OpenSea announced plans to allocate half its revenue toward buybacks tied to its upcoming SEA token, expected in early 2026. Even emerging projects like World Liberty Financial, linked to the Trump family, have adopted buyback-and-burn mechanisms to manage token supply.

Meanwhile, leading DeFi protocols Uniswap and Aave helped push total DeFi revenues back above $600 million earlier this quarter, creating fresh capital for initiatives like these.

About Ether.fi

Founded as a non-custodial Ethereum liquid restaking and staking protocol, Ether.fi allows users to stake ETH and receive tradable tokens that continue generating yield. The platform currently secures around $10 billion in total value locked (TVL) and reports annualized fees of roughly $360 million, according to data.