EL7.AI
CryptoMediumUpdated×2•Originally published 29 March 2026•Updated 30 March 2026•
1 min read

Lido DAO Considers $20M Token Buyback Following 96% Price Collapse

Key Facts

1Lido DAO has formally approved a $60 million operating budget for 2026.
2The protocol plans to move beyond core liquid staking into yield vaults and institutional wrappers.
3The strategy is a response to the compression of staking yields.

Lido DAO has previously approved a $60 million operating budget for its 2026 strategic expansion, but recent market volatility has prompted new defensive measures. A proposal was submitted to the community seeking to repurchase $20 million worth of LDO tokens from the open market following a 96% price collapse. New technical details reveal that the buyback will be funded using up to 10,000 stETH from the protocol's treasury. Furthermore, the execution strategy may involve routing purchases through centralized exchanges (CEXs) due to thin liquidity currently available on decentralized platforms. This initiative aims to provide price support alongside existing plans to diversify into institutional-grade DeFi products. Analysts suggest this shift reflects the protocol's attempt to balance long-term growth ambitions with immediate capital preservation strategies during the current liquidity crisis.