Key Highlights
- A $20 million buyback initiative for LDO tokens has been proposed by Lido DAO, utilizing 10,000 stETH from treasury reserves.
- The governance token currently trades at $0.30, representing a 95.9% decline from its August 2021 peak of $7.30.
- Current LDO/ETH valuation sits approximately 63% beneath the two-year median, creating what the DAO describes as an unprecedented market dislocation.
- The repurchase program would proceed through incremental tranches of 1,000 stETH, with each phase requiring individual tokenholder authorization.
- Protocol revenue for 2025 reached $40.5 million, representing a 23% decrease, while Lido maintains leadership with 23.2% of Ethereum’s staking market.
A new buyback initiative targeting $20 million worth of LDO governance tokens has been introduced by Lido DAO. The proposal received submission on Friday and currently awaits tokenholder voting.
The initiative seeks authorization to deploy 10,000 stETH — valued at approximately $20 million — from treasury holdings to acquire LDO tokens through open market operations.
According to the DAO, LDO currently experiences one of the most significant valuation gaps relative to Ether throughout the token’s existence. The LDO/ETH ratio presently registers at 0.00016, approximately 63% lower than the two-year median level.
Current trading data from CoinGecko shows LDO at $0.30 per token. This valuation represents a 95.9% decrease from the all-time high of $7.30 recorded in August 2021.
The token maintains a market capitalization near $255 million, positioning it as the 141st largest cryptocurrency by market valuation.
“That dislocation is not justified by a proportional deterioration in protocol performance,” Lido DAO stated in the proposal.
Buyback Execution Strategy
The repurchase program would unfold through a phased approach rather than a single transaction. Lido DAO intends to execute the buyback in incremental portions of 1,000 stETH each, reaching a maximum total of 10,000 stETH.
Tokenholders must grant separate authorization for each individual batch before execution can commence. The DAO has indicated plans to employ limit orders or dollar-cost averaging techniques to minimize exposure to market fluctuations.
Following completion of each tranche, performance results require documentation before initiating the subsequent batch.
An earlier automated buyback proposal from November 2024 received consideration but ultimately remained unexecuted.
Financial Performance and Market Position
Lido’s revenue for 2025 totaled $40.5 million, reflecting a 23% reduction compared to the previous year. Staking fees, comprising the primary revenue stream, decreased 23% to $37.4 million.
While acknowledging the revenue decline, the DAO highlights additional metrics suggesting fundamental resilience. Operating costs improved by 13% year over year, while Lido’s take rate — representing the protocol’s portion of staking rewards — increased from 5% to 6.11%.
Despite current token valuation challenges, Lido retains its leadership position within Ethereum’s liquid staking ecosystem. Data from Dune Analytics indicates the protocol controls 23.2% of total staked Ether.
This market dominance has previously attracted attention regarding potential centralization implications for the Ethereum network.
The proposal advances to a tokenholder vote, where LDO holders will determine approval for the initial 1,000 stETH batch.
