$ETHFI
Ether.Fi has proposed a plan to allocate 5% of its protocol revenue for repurchasing its native token ETHFI and distributing it as rewards to ETHFI stakers. This initiative aims to 'enhance the utility of ETHFI, strengthen its market, and align user incentives with the growth of the Ether.Fi ecosystem.'
According to the proposal, this 5% revenue allocation is just a starting point and is initially only available to token holders who have staked ETHFI for at least one month. The proposal will be decided by token holder voting before the end of this week. Ether.Fi has already used part of its profits to repurchase tokens from its main liquidity pool (LP), indicating their desire to enhance the value of their tokens and create market stability.
Repurchasing tokens can reduce the number of tokens in circulation, which may increase demand and token value, potentially attracting more investors and long-term holders. Ether.Fi is clearly trying to demonstrate its commitment to enhancing the utility and market strength of ETHFI. Regular repurchases may help stabilize token prices by reducing supply and alleviating sell pressure, making the market more stable for ETHFI holders.
As a significant liquid staking protocol, Ether.Fi's total value locked (TVL) is approaching $10 billion. Since its launch in 2023, Ether.Fi has generated nearly $60 million in cumulative revenue from various sources, including fees. Ether.Fi generates significant revenue through its protocol fees and auxiliary products, including 'Liquid,' which is a treasury designed to maximize depositor returns through restaking and DeFi strategies. Liquid charges a management fee of 1-2% on all deposits, which will accumulate back to the Ether.Fi protocol.