ether.fi Foundation makes a notable move in the cryptocurrency world. The decision to transfer ETHFI tokens to separate multi-signature wallets has generated both excitement and curiosity within the community. This step by the foundation is seen as an effort to better isolate funds and increase transparency for the community. So, what are the reasons behind this decision?
Community Engagement at Significant Levels
ether.fi Foundation has reached a total value locked (TVL) of over $6.69 billion. Since the launch of the ETHFI token, more than 5.3 million tokens have been staked. This indicates strong community participation and support.
The foundation also announced a strategy to allocate up to 50% of monthly protocol revenues to buy back ETHFI tokens and provide liquidity. This move aims to improve the token’s market dynamics and create better trading conditions for users.
Importance of Multi-Signature Wallets
One of the main goals of transitioning to multi-signature wallets is to enhance transparency and security. Isolating funds in separate wallets aims to provide clearer and more accountable fund management. In the context of decentralized finance (DeFi), such steps are crucial for trust and transparency.
Additionally, the foundation’s commitment to empowering token holders with direct voting rights in the governance of the ether.fi protocol constitutes another important aspect of this move. Token holders will have a say in important decisions such as protocol upgrades, economic parameters, grant programs, and node operator selections.
ETHFI’s Market Performance
The current market performance of ETHFI tokens provides important context for this move. According to recent data, the price of ETHFI is at $2.18 with a 24-hour trading volume of $94.9 million. Although there has been a 3.07% price increase in the last 24 hours, a 9.29% decline was recorded over the past week.
The open interest of the token decreased by 3.04% to $61.1 million, indicating some fluctuations in investor sentiment. With a circulating supply of 170 million tokens, the project’s market value is determined to be $372.9 million.
