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

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.