Lido details NEST automated buyback program as LDO sits near record lows

Lido DAO has released a detailed overview of NEST, the automated program it is building to buy back its own LDO governance token. 

The program is a direct response to LDO’s token, which has lost more than 95% of its value since 2021. 

What is Lido’s NEST? 

The Network Economic Support Tokenomics (NEST) program is Lido DAO’s long-term solution to the growing distance between what the protocol earns and what its token is worth, which it has been warning about for months. 

Cryptopolitan reported that NEST is meant to run as an automated mechanism. It’s completely separate from the one-off proposal the DAO put forward in March to spend treasury funds directly on LDO.

An annual revenue benchmark of $40 million (about $109,000 per day) has already been set by the company. If the protocol earns more than this baseline in a day, 50% of that extra income is sent to the NEST program to buy LDO. 

However, the program can only buy $50,000 worth of LDO per day, with a total annual cap of $10 million.

Cryptopolitan reported that the previous system proposed by Lido’s Growth Committee would use up to 10,000 stETH from the DAO treasury, worth roughly $20 million at ether prices near $2,000, to accumulate LDO.

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