📰 #LidoDAOProposes20MBuyback Bottom-Up or Confidence Restoration?

Lido DAO, one of the largest staking protocols in the DeFi ecosystem, has taken a remarkable step following weakening market conditions and sharp value loss. According to the new governance proposal submitted by the DAO, a buyback of approximately $20 million from the protocol's treasury is planned.

The proposal aims to purchase Lido DAO Tokens from the market using 10,000 stETH from its treasury. The main reason for this move is that the token price is trading at a "historically significant discount" compared to the protocol's actual performance.

Data supports this claim. LDO has fallen from its 2021 level of $7.30 to the $0.30 range, a drop of approximately 95-96%. At the same time, the LDO/ETH ratio is trading at a discount of approximately 60-70% compared to the average of the last two years.

This buyback plan aims not only to support the price but also to change market psychology. Purchases under the proposal are planned to be made in stages (in 1,000 stETH increments), with each step subject to DAO voting. This aims to ensure a controlled and transparent process.

On the other hand, timing is quite critical. Protocol revenues fell by 23% to $40.5 million in 2025, and a similar weakening was observed in staking revenues. Despite this, Lido still maintains its leading position in the Ethereum staking market with approximately 23% share, reinforcing the argument that "fundamentals are strong but the price is weak."

According to analysts, this move can be interpreted in two ways:

Firstly, the DAO is taking advantage of the undervaluation opportunity with a "buy back from the bottom" strategy. Secondly, it is an attempt to reverse the erosion of confidence created by the falling price.

In conclusion, this development, unfolding under the hashtag #LidoDAOProposes20MBuyback, provides a critical example not only for the LDO price but also for how DeFi projects respond during times of crisis. If the buyback is confirmed and implemented, this step could be priced by the market as a strong "insider confidence signal."