<p>Lido’s decentralized autonomous organization has proposed a one-off buyback of its governance token to support price levels amid a prolonged downturn.</p>
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   <li>Lido DAO has proposed a one-off buyback of up to 10,000 stETH, about $20M, to accumulate LDO amid what it calls a significant valuation gap.</li>
   <li>The token is trading roughly 63% below its two-year median against Ether and remains down 95.9% from its all-time high.</li>
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<p>According to a governance <a href="https://research.lido.fi/t/utilizing-market-opportunities-steth-ldo-trade/11358" rel="noopener noreferrer nofollow">proposal</a> submitted by the Lido Ecosystem Operations team, the plan would allocate up to 10,000 stETH from the DAO’s treasury for Lido DAO to accumulate LDO (<a href="https://crypto.news/price/lido-dao/" rel="noopener noreferrer nofollow">LDO</a>). At current prices, the allocation is valued at nearly $20 million.</p>
<p>Framing the move as a response to mispricing, the DAO said it “represents one of the most significant dislocations between LDO’s market price and its underlying protocol fundamentals in the token’s history.”</p>
<p>You might also like: <a href="https://crypto.news/cesr-turns-ethereum-staking-into-a-usable-institutional-reference-rate/" rel="noopener noreferrer nofollow"> CESR turns Ethereum staking into a usable institutional reference rate </a></p>
<p>If approved, the <a href="https://crypto.news/lido-dao-no-longer-all-about-liquid-staking-dao/" rel="noopener noreferrer nofollow">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>
<p>Token holders, however, have the right to review every tranche, as each batch would require separate approval before further execution.</p>
<p>Lido DAO also highlighted the LDO to ETH ratio, which it said was at “historically depressed levels,” trading at a steep discount to Ether, with its current ratio roughly 63% below its two year median.</p>
<p>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>
<h1 class="wp-block-heading" id="lido-s-revenue-has-fallen">Lido’s revenue has fallen</h1>
<p>In its latest update, the protocol reported a decline of 23% to $40.5 million in 2025, but the foundation argues that <a href="https://crypto.news/lidos-community-staking-module-sharpens-its-edge-with-dvt-clusters/" rel="noopener noreferrer nofollow">core performance</a> remains strong despite the drop in revenue.</p>
<p>For instance, it noted that Lido’s 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>
<p>“That dislocation is not justified by a proportional deterioration in protocol performance,” the DAO said.</p>
<p>Read more: <a href="https://crypto.news/ethereum-foundation-deepens-defi-treasury-push-with-fresh-morpho-deployment/" rel="noopener noreferrer nofollow"> Ethereum Foundation deepens DeFi treasury push with fresh Morpho deployment </a></p>

Lido DAO proposes phased LDO buyback using 10,000 stETH from treasury

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