Lido DAO is considering a plan to buy back its own token, LDO, in an effort to support its price after a long period of decline.
The proposal suggests using up to 10,000 stETH—worth around $20 million—from the DAO’s treasury to gradually buy LDO from the market.
The idea behind this move is simple: the team believes the token is undervalued.
According to them, LDO’s current price does not reflect the actual strength of the platform. In fact, the token is trading about 63% below its typical level compared to Ether, and is still down nearly 96% from its all-time high.
If the plan goes ahead, the buyback won’t happen all at once. Instead, it will be done in smaller steps—1,000 stETH at a time. Each step will need approval from token holders, giving the community control over how the process moves forward.
To avoid sudden price swings, the DAO may use strategies like limit orders or dollar-cost averaging, which spreads out purchases over time.
Even with the token’s weak price, Lido remains a major player in Ethereum’s staking ecosystem. It still holds a large share of the liquid staking market.
However, revenue has taken a hit. The protocol reported a 23% drop, bringing total revenue to about $40.5 million. At the same time, staking rewards also fell by around 20%.
On the positive side, costs have improved, and the platform’s take rate has increased slightly, showing some operational strength.
Lido’s main argument is that the drop in price is much bigger than the actual decline in performance. In other words, they believe the market is undervaluing the project.
In short, this proposed buyback is an attempt to close that gap—by supporting the token price while signaling confidence in the platform’s long-term future.
