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

Protocol & Proposals
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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 stability (see prior DAO proposals #8 and #10).

Building on this framework, the proposed program provides clear parameters for treasury deployment and governance oversight, while reinforcing the Foundation’s commitment to value alignment between protocol success and tokenholders.

The Foundation intends to progressively expand buy-back capacity in proportion to protocol revenues, particularly while ETHFI remains below US $3, ensuring efficient use of surplus revenue to strengthen market confidence and reduce circulating supply.

Proposal Details

Buy-Back Program

  • The Foundation is authorised to execute ETHFI buy-backs from open markets or designated on-chain venues when the token spot price is strictly below US $3.00.

  • The total cap for this program is US$50 million (equivalent USD value) sourced from the treasury.

  • Buy-backs shall commence upon DAO approval and continue until:

    (a) the cap is reached,

    (b) the Foundation deems the program complete, or

    (c) a subsequent governance vote modifies or terminates the program.

  • The Foundation may increase the share of protocol revenue allocated to buy-backs while ETHFI remains below US $3, provided total spend does not exceed the authorised cap.

  • All buy-back transactions will be transparently recorded on-chain and publicly reported through the ether.fi dune dashboard.

Next Steps

Voting Duration: 4 days
Voting Platform: Snapshot

Voting Options

  • For: Approve the buy-back program as described.

  • Against: Do not approve the program.

  • Abstain: Neither approve nor reject.

Implementation Timeline

Once approved, the buy-back program becomes active immediately, subject to the price condition being met.

1 Like
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Voted “For” for the buyback program :smiling_face_with_sunglasses:

3

This proposal is so vague. Please be thorough before posting similar proposals.

  1. Onchain liquidity is no more than 500K. How exactly do you plan to execute 100x this limit. If purchases are made onchain, how are we sure that the tokens are actually purchased and not coming from unintended sources?
  2. What timeframe will the $50M buybacks be used (assuming price does not meet $3)?
  3. How did you arrive at $3 for the limit?
  4. Are you able to share investor addresses where tokens were received so the community can verify that this program is not used for investor exit liquidity?
  5. Could you kindly share what % of the team’s tokens are sold? I understand that the team can sell, and that’s okay. I am trying to understand how much % of $50M will be used for buying back existing tokens vs being used to absorb future vesting.
3 Likes