Gate News update, March 30, 2026, Lido DAO submitted a new governance proposal, planning to gradually repurchase its governance token LDO in response to the current weak market and to support its price. According to the proposal, the DAO will allocate up to 10,000 stETH from the treasury, worth approximately $20 million, to accumulate LDO. The buybacks will be carried out in batches, with each batch covering 1,000 stETH, using limit orders or a dollar-cost averaging approach to reduce the impact of market volatility, and each batch of tokens to be repurchased will require separate approval by token holders.
Lido DAO said that there is a significant divergence between the current market price of LDO and the underlying protocol fundamentals. According to the proposal, the LDO-to-Ethereum ratio is at a historical low, and the trading price is about 63% lower than the two-year median. Despite the price decline, Lido remains a leader in Ethereum liquid staking, with a market share of about 23%. However, LDO’s price has fallen nearly 96% from its $7.30 peak, indicating a clear mismatch in how the market is pricing the token.
From the perspective of protocol operations, Lido’s 2025 revenue is expected to decline 23% to roughly $40.5 million, but core performance remains solid. In the same period, rewards are down by about 20%, costs are down 13% year over year, and the fee rate has risen from 5% to 6.11%. The DAO said that LDO price volatility does not match the magnitude of the protocol’s actual performance decline, which is also the main reason for proposing the buyback plan.
If this proposal is approved, it will provide short-term price support for LDO while also demonstrating Lido DAO’s proactive management of the governance token’s price and the protocol’s value. Investors may watch the progress of the LDO buyback execution and the market’s reaction to the proposal, or it may become one of the focal points in the near-term crypto market.
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