Key Highlights:
- Lido DAO proposes a $20M token buyback using treasury funds
- LDO trades near all-time lows, seen as undervalued by the DAO
- Buyback could absorb up to 8% of circulating supply
DAO moves to support token price
The Lido DAO is considering a one-time buyback of its native LDO token, using up to 10,000 stETH from its treasury, worth around $20 million.
The proposal aims to stabilize the token after a sharp decline in price.
Market dislocation cited as key reason
LDO recently dropped to around $0.27, a record low. The DAO argues this reflects a disconnect between price and fundamentals, pointing to Lido’s continued dominance in Ethereum staking with around 23% market share.
At current prices, the buyback could remove roughly 65 million tokens from circulation.
Separate from long-term buyback plans
This proposal is distinct from Lido’s planned automated buyback system (NEST), which has not yet activated due to market conditions.
Instead, this is designed as a faster, more aggressive response to current market weakness.
Read the full article on
theblock.
