The decentralized liquidity protocol Ether.Fi community has submitted a new governance proposal for the ETHFI token buyback plan.
Ether.Fi Community Votes on $50 Million ETHFI Buyback Plan
The proposal proposes approving the use of up to $50 million worth of funds from the protocol's treasury to purchase ETHFI when the token price falls below $3.
The aim of the plan was to gradually accumulate ETHFI tokens during periods of price decline and support the token value by directing a portion of the protocol's revenues to the buyback process.
The buyback process will begin immediately after DAO approval is received and will end when one of the following conditions are met: the total buyback amount reaches $50 million, the Ether.Fi Foundation deems the plan complete, or the plan is changed by community vote.
The proposal will be voted on over four days on the community voting platform Snapshot. If approved, the buybacks will take effect immediately once the specified price condition is met.
This move is seen as part of the Ether.Fi community's strategy to support market stability and strengthen the token economy. Experts say that if approved, the proposal could positively impact ETHFI's long-term supply-demand balance.
*This is not investment advice.
