1. Background of the buyback plan
On August 7, Lido community member Kuzmich proposed a proposal called (Dynamic Buyback Program for LDO) on the official governance forum. The core idea is straightforward: use a portion of the idle liquid assets in the Lido treasury to regularly buy back LDO, providing a more stable support for the token's value.
Currently, the Lido treasury has about $145 million in idle assets, including USDC, USDT, DAI, and some stETH. If this money just sits in the treasury, it is equivalent to 'dead money', and it is better to use it to support the token ecosystem.
The buyback rules of the proposal are not one-size-fits-all but are dynamically adjusted based on the treasury situation:
Normal status: 70% of funds used for buyback, 30% retained for operations.
Treasury drops to $50 million–$85 million: the ratio changes to 50% buyback / 50% retained.
Below $50 million: Immediately suspend buybacks and continue only when the treasury returns to a safe range.
2. Timeline and decision-making process
This proposal is currently still in the governance process and has not yet been formally implemented.
August 7–14: Governance forum collects community opinions.
August 14: Discuss details in the Lido token-holder community call.
August 15–24: Revise the proposal based on feedback.
August 25: Submit Snapshot vote to be decided by LDO holders.
So what we see now is still in the proposal stage and has not entered actual operation. Whether there will be a buyback and when it will happen will have to wait for the voting results on August 25.
