Ether.Fi Treasury Initiates Major Token Acquisition Strategy with $50M Commitment

The Ether.Fi ecosystem is making a significant move to stabilize and strengthen its token economics. According to recent community governance discussions, the foundation has received approval to deploy up to $50 million in treasury resources toward acquiring ETHFI tokens from the open market.

How the Token Recovery Initiative Works

The proposal establishes a price-triggered mechanism designed to maximize capital efficiency. When ETHFI trades below the $3 threshold, the foundation gains authorization to begin accumulating tokens systematically. This approach ensures the buyback only occurs during favorable market conditions, protecting the treasury from overpaying during price rallies.

The current market price of ETHFI sits at $0.74, significantly below the $3 trigger point, which means the acquisition strategy could deploy its full capital allocation if governance approval proceeds as planned. The foundation will maintain flexibility throughout the program—they can halt the initiative once the $50 million allocation is exhausted, determine the program has reached its optimal completion point, or modify the strategy based on future governance votes.

Execution Timeline and Voting Process

The community will cast votes over a four-day window using Snapshot, the standard governance platform for protocol-level decisions. Upon receiving the necessary approval, the token acquisition program becomes immediately operational—provided market conditions align with the established price parameters.

Strategic Implications for the Protocol

This treasury-backed token accumulation serves multiple purposes. By consistently purchasing ETHFI at depressed valuations, the foundation increases its holdings while reducing circulating supply pressure. Simultaneously, the proposal aims to redirect a larger portion of protocol-generated revenue toward future buyback rounds, creating a sustainable mechanism for value accrual to long-term token holders.

The initiative reflects broader industry trends where protocols use treasury resources and fee structures to support token price stability and create deflationary dynamics within their ecosystems.