Lido Community Members Propose LDO Token Staking and Buyback Plan

A Lido community member, who goes by the screen name “lidomaxi,” created a governance proposal Wednesday to increase the utility of Lido’s native governance token $LDO by introducing staking and a buyback program for the token.

The proposal includes an insurance fund for the Lido DAO as well as a revenue-sharing parameter that would redirect 20-50% of “future Lido DAO revenue from the protocol treasury to stakers of $LDO.”

The proposal preceded Jump Trading moving nearly 3 million $LDO tokens worth $7.5 million in two transactions to a new address, according to data analytics firms Nansen and Arkham Intelligence. $LDO jas jumped nearly 15% in the day, before settling at $2.38, per CoinGecko

The proposal already has support from several community members. “There’s definitely a good case to be made for something like this,” said Steakhouse, a financial advisory firm for several decentralized autonomous organizations (DAO).

Hal Press, the founder of hedge fund North Rock Digital, wrote on Twitter that he has “been critical of $LDO in the past partly because the token accrued no value,” but said if the proposal was adopted, it “would go a long way toward fixing that issue.”