Lido DAO Proposes $10M LDO Buybacks, Expands Beyond Staking
Lido DAO has unveiled a “Liquid Buybacks” proposal to allocate up to $10 million annually from staking revenue for LDO buybacks, triggering only when ETH trades above $3,000 and annualized staking fees exceed $40 million. Execution is slated for early 2026, pending community approval. On-chain data shows a 9% LDO price dip after the announcement but 37 million LDO moved off exchanges into long-term wallets, raising off-exchange supply to 865 million and boosting long positions to 66% of trading activity. Despite a Q3 loss and a smaller buyback compared to Aave’s $50 million and Uniswap’s $26 million programs, Lido’s 23% liquid staking market share and $94 million annualized revenue underpin confidence. Traders should note that buybacks alone may have limited short-term impact; the real catalyst will be Lido’s planned 18-month expansion into institutional stVaults, a simplified retail “Earn” interface and structured yield products anchored by stETH.
Neutral
The $10M annual LDO buyback, triggered only at market highs, is modest compared to peers and unlikely to drive a significant short-term price rally. However, Lido’s strong staking revenue, market share and planned multi-product expansion anchored by stETH offer solid long-term growth prospects. This balanced outlook suggests limited immediate impact but potential future upside once new products roll out successfully.