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Ether.Fi proposes 5% revenue buyback for ETHFI stakers

Ether.Fi proposes 5% revenue buyback for ETHFI stakers

GrafaGrafa2024/12/17 05:50
By:Mahathir Bayena

Ether.Fi (CRYPTO:ETHFI), a decentralised finance (DeFi) protocol, has put forward a proposal to allocate a percentage of its protocol revenue to buy back ETHFI tokens, rewarding stakers.

The plan aims to enhance the token’s utility and strengthen the Ether.Fi ecosystem.

The proposal suggests using 5% of protocol revenue to repurchase ETHFI tokens, with the aim of distributing these tokens to ETHFI stakers.

This initiative is designed to align user incentives with the growth of the Ether.Fi platform, according to a community governance post from December 16.

The buybacks will be available exclusively to tokenholders who have staked ETHFI for at least one month.

Ether.Fi clarified that the 5% revenue allocation is only a starting point, and the reward distribution mechanism will be refined based on user feedback.

The decision on the proposal will be made by the end of this week, following a tokenholder vote.

Ether.Fi, which facilitates liquid restaking, has already been using its protocol revenue to buy back ETHFI tokens from the primary liquidity pool.

According to data from DefiLlama, Ether.Fi is one of the top DeFi protocols, with nearly $10 billion in total value locked (TVL).

Since its launch in 2023, Ether.Fi has accumulated around $60 million in income from various sources, including fees.

The liquid restaking model, which allows tokens to be staked for rewards and simultaneously used for securing other protocols, has gained popularity in the DeFi space.

Ether.Fi competes with other liquid restaking protocols like Renzo and Kelp, with a total value locked (TVL) in the top five restaking platforms sitting at about 3.38 million ETH, worth roughly $12.5 billion, according to Kairos Research.

At the time of reporting, the price of Ether.fi (ETHFI) was $2.87.

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