# \#11 Ether.fi DAO Proposal - Withdrawal Revenue Buyback Program

**URL:** <https://governance.ether.fi/t/11-ether-fi-dao-proposal-withdrawal-revenue-buyback-program/2920>\
**Category:** Protocol & Proposals\
**Created:** [April 25, 2025, 11:13pm UTC](https://governance.ether.fi/t/11-ether-fi-dao-proposal-withdrawal-revenue-buyback-program/2920 "2025-04-25T23:13:51Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![ether.fi](https://yyz1.discourse-cdn.com/flex003/user_avatar/governance.ether.fi/ether.fi/32/341_2.png) [@ether.fi](https://governance.ether.fi/u/ether.fi)\
**Post date:** [April 25, 2025, 11:13pm UTC](https://governance.ether.fi/t/11-ether-fi-dao-proposal-withdrawal-revenue-buyback-program/2920/1 "2025-04-25T23:13:51Z")

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**Proposal Summary**

This proposal seeks approval to repurpose revenue generated by the eETH withdrawal queue towards ETHFI token buybacks. [ether.fi](http://Ether.fi) generates revenue on the withdraw process through two different mechanisms - normal withdrawals forfeit yields during the exit process, and fast withdrawals charge a 0.3% fee on redemption. By pooling the withdrawal-derived revenue into a transparent buyback mechanism, we align protocol revenue capture with token utility, reduce circulating supply, and reinforce long-term stakeholder incentives.

**Rationale**

The [ether.fi](http://ether.fi) withdrawal queue operates in two modes:

1. **Slow Withdrawal**
  - Up to 14 day withdrawal window
  - Validator exits are queued & upon claim, their eETH is burned

2. **Fast Withdrawal**
  - Instant withdrawal window
  - Users pay a 0.3% fee on the withdrawn ETH

Redirecting this steady revenue stream into ETHFI buybacks will:

- **Enhance Token Utility**

- **Align Incentives**

- **Transparent Revenue Utilization**

**Details**

1. **Fee Capture & Routing**
  - **Source:** 0.3% fast-withdrawal fee & staking yield on normal withdrawals
  - **Routing:** Forwarded to a dedicated “Buyback Treasury” wallet

2. **Buyback Mechanism**
  - **Frequency:** Monthly on-chain buybacks via a DEX aggregator (e.g., 0x, Paraswap) to optimize execution price and minimize slippage.
  - **Cap:** No cap; protocol reinvests all collected fees each cycle.

3. **Treasury Management**
  - **Transparency:** All deposits and swap transactions are verifiable on-chain.
  - **Usage** : ETHFI Buybacks to be allocated to ETHFI stakers or Buyback and LP program
  - **Accounting:** An on-chain registry records cumulative ETHFI purchased and burned or held.

4. **Integration with Governance**
  - The community may vote to adjust the structure or temporarily divert held tokens.

**Proposal Review and Adjustments**

- **Parameter Tweaks:** Governance may propose adjustments to swap frequency, aggregator venue, etc
- **Transparency Reports:** The core team will publish quarterly updates summarizing fees collected, tokens bought, etc

**Diagram**

 ![image](https://canada1.discourse-cdn.com/flex003/uploads/etherfii/original/1X/417b116bf37f15f859afa002e6b2e9ebf64e5c94.jpeg)

**Conclusion**

By channeling withdrawal-generated revenue into ETHFI buybacks, we crystallize protocol value capture, deliver continuous support for the token, and transparently align stakeholder incentives. This mechanism strengthens [ether.fi](http://ether.fi)’s economic design, rewarding both active participants and long-term holders.

#### Next steps

Voting Duration: 4 days  
Voting Platform: [https://snapshot.box/#/s:etherfi-dao.eth/proposal/0x6a9bdf1bb43b3e38f7313247464360ab3c637dd54f45c99dfaa085539c0dc693](https://snapshot.box/#/s:etherfi-dao.eth/proposal/0x6a9bdf1bb43b3e38f7313247464360ab3c637dd54f45c99dfaa085539c0dc693)

Voting Options:

- For: Approve the withdrawal revenue buyback program
- Against: Do not approve the proposal

Thank you for your continued support