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Lido\u2019s decentralized autonomous organization has proposed a one-off buyback of its governance token to support price levels amid a prolonged downturn.<\/p>\n
\n Summary<\/span>\n <\/p>\n <\/p>\n According to a governance proposal<\/a> submitted by the Lido Ecosystem Operations team, the plan would allocate up to 10,000 stETH from the DAO\u2019s treasury for Lido DAO to accumulate LDO (LDO<\/a>). At current prices, the allocation is valued at nearly $20 million.<\/p>\n Framing the move as a response to mispricing, the DAO said it \u201crepresents one of the most significant dislocations between LDO\u2019s market price and its underlying protocol fundamentals in the token\u2019s history.\u201d<\/p>\n <\/p>\n If approved, the proposal<\/a> would be executed in smaller batches of 1,000 stETH, up to a total of 10,000 stETH, with plans to use limit orders or adopt a dollar cost averaging strategy to avoid market volatility.<\/p>\n Token holders, however, have the right to review every tranche, as each batch would require separate approval before further execution.<\/p>\n Lido DAO also highlighted the LDO to ETH ratio, which it said was at \u201chistorically depressed levels,\u201d trading at a steep discount to Ether, with its current ratio roughly 63% below its two year median.<\/p>\n Even though Lido remains in the top spot of the Ethereum liquid staking market with a market share of about 23%, according to Dune Analytics data, LDO price has fallen 95.9% from its $7.30 high.<\/p>\n In its latest update, the protocol reported a decline of 23% to $40.5 million in 2025, but the foundation argues that core performance<\/a> remains strong despite the drop in revenue.<\/p>\n For instance, it noted that Lido\u2019s rewards were down approximately 20% over the same period, while its costs improved 13% year over year. Its take rate has also increased from 5% to 6.11%.<\/p>\n \u201cThat dislocation is not justified by a proportional deterioration in protocol performance,\u201d the DAO said.<\/p>\n <\/p><\/div>\n\n\n