ETHFI's $50 million buyback proposal and an overview of the 2025 DeFi buyback wave.

TL;DR

• On October 30, the ether.fi community launched a proposal to buy back up to $50 million worth of ETHFI tokens, with a trigger price of less than $3 . The funds will come from protocol revenue and treasury balances.
• In 2025, over $1.4 billion worth of DeFi token buybacks were actually executed, with leading projects such as Hyperliquid, Raydium, and Jupiter contributing more than half of the revenue.
• Community sentiment is generally bullish, believing that buybacks reflect the value of "real income," while technical indicators show that ETHFI has found initial support around $0.93.

Core Analysis

1. Details of the ETHFI buyback proposal

• The proposal was released on October 30, 2025, on the ether.fi governance forum, and a 4-day Snapshot pre-voting period was opened simultaneously.
• Funding cap : US$50 million, controlled by the foundation; two buybacks totaling approximately US$7.5 million have been executed previously.
• Triggering conditions : Buy back in batches on DEX when the market price is below $3 ; the closing price on October 31 was $0.93–$0.96, so the conditions have been met.
• Transparency mechanism : All transactions are executed on the chain and made public on the Dune dashboard.
• Voting status : Voting is in progress as of October 31. Community support is high, and the final results are expected to be released on November 4.
• Revenue Support : DeFi Llama's annualized revenue ranges from $70 million to $116 million, with monthly revenue exceeding $8 million, sufficient to cover buyback budgets .

The official forum post details the execution rules and funding sources. ether.fi

2. The DeFi buyback boom in 2025 (> $1.4 billion)

*Only the executed portion is counted.
Cumulative executions have reached approximately $1.4 billion , with DeFi accounting for about 80%. If ETHFI's $50 million grant is approved, it will push the total DeFi amount to nearly $1.5 billion. Statistics are sourced from a CoinGecko research report and The Block 's October 31st report.

3. Social Emotions and Topic Context

• Mainstream opinion : Key opinion leaders (KOLs) believe ETHFI's buyback is "genuine revenue-driven," with a potential upside of 3.3 times to $3. (x.com)
• Bullish arguments :
  1. The agreement generates annualized revenue exceeding $100 million, sustainably supporting buybacks.
  2. TVL remains stable around $10 billion, with strong fundamentals;
  3. It aligns with projects like Aave and Hyperliquid, demonstrating mature financial management.
• A few concerns : Academics worry that buybacks will only provide short-term stability, and the long-term impact will still depend on income fluctuations and market beta.
• Engagement : The number of interactions with key posts (154 likes, 20 shares) indicates high community attention, but it is still a discussion within the "insider" circle.

4. Technical Analysis (October 25-31)

The price stopped falling on the day of the announcement (October 28th), but there was no significant rebound in trading volume, indicating that the news provided psychological support rather than a direct catalyst. (bitget yahoo)

in conclusion

1. Short-term impact : If the proposal is passed, the $50 million buyback could provide solid buying support around $0.93. With the RSI oversold and the buyback providing a floor, the price is expected to challenge the $1 resistance level.
2. Mid-term value : Based on an annualized revenue of $100 million, $50 million only accounts for about 50% of the annual cash flow, so the funding pressure is manageable and buybacks and growth can go hand in hand.
3. Industry trends : In 2025, the total amount of DeFi buybacks exceeded $1.4 billion, proving that "real income + buybacks" is replacing "emission subsidies" as the mainstream paradigm for value capture; ETHFI is a newly emerging typical example.
4. Risk warning : The effectiveness of the buyback ultimately depends on the protocol's continued profitability; if ETH staking yields or market sentiment weaken, buying support may be difficult to maintain in the long term.