Etherfi Plans $50 million Buyback as ETHFI Drops 89%

- Ether.fi DAO allocates $50 million to repurchase ETHFI tokens if prices fall below $3. - The initiative reflects Ether.fi’s strategy to stabilize token value amid sharp declines. On October 31, 2025, The Block reported that the Ether.fi DAO proposed a buyback program for its native ETHFI token. The DAO plans to use up to $50 million from its treasury for this initiative. This program will automatically activate if ETHFI's price falls below $3, aiming to stabilize the token's value in a challenging market. The proposal will undergo a four-day governance vote before activation. This decision follows ETHFI’s steep 89% price decline. As of October 31, the token traded at approximately $0.93, far from its peak value in 2024. By reducing the token’s circulating supply, Ether.fi aims to bolster market confidence and protect tokenholder interests. This strategy aligns with an industry-wide pivot toward "protocol-as-business" models in decentralized finance (DeFi). In 2025, various protocols repurchased over $1.4 billion worth of tokens, showcasing a practice similar to traditional corporations. Protocols like Aave and Uniswap have used fee-generated revenue to fund their buybacks, aiming to improve liquidity and foster investor trust. According to market data at 15:08 UTC on October 31, ETHFI was trading at $0.956, an increase of 6.939% over the last 24 hours.