Lido Community Members Propose LDO Token Staking and Buyback Plan

The proposal includes a revenue-sharing parameter that would redirect 20-50% of “future Lido DAO revenue from the protocol treasury to stakers of $LDO.”

AccessTimeIconMay 18, 2023 at 8:26 a.m. UTC
Updated May 18, 2023 at 10:02 a.m. UTC

A Lido community member, who goes by the screen name “lidomaxi,” created a governance proposal Wednesday to increase the utility of Lido’s native governance token LDO by introducing staking and a buyback program for the token.

The proposal includes an insurance fund for the Lido DAO as well as a revenue-sharing parameter that would redirect 20-50% of “future Lido DAO revenue from the protocol treasury to stakers of $LDO.”

The proposal preceded Jump Trading moving nearly 3 million LDO tokens worth $7.5 million in two transactions to a new address, according to data analytics firms Nansen and Arkham Intelligence. LDO jas jumped nearly 15% in the day, before settling at $2.38, per CoinGecko

The proposal already has support from several community members. “There’s definitely a good case to be made for something like this,” said Steakhouse, a financial advisory firm for several decentralized autonomous organizations (DAO).

Hal Press, the founder of hedge fund North Rock Digital, wrote on Twitter that he has “been critical of LDO in the past partly because the token accrued no value,” but said if the proposal was adopted, it “would go a long way toward fixing that issue.”

Edited by Shaurya Malwa.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Sage D. Young is a tech protocol reporter at CoinDesk. He owns a few NFTs, gold and silver, as well as BTC, ETH, LINK, AAVE, ARB, PEOPLE, DOGE, OS, and HTR.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.