Lido Activates Automatic LDO Buyback Program with $10M Annual Limit

Lido, a staking protocol, has launched its automatic LDO token buyback program, known as NEST (Network Economic Support Token). The long-awaited program aims to ensure dynamic LDO buybacks based on prevailing market conditions. According to the project, the daily limit is set at $50K, and annual purchases are capped at $10M.

The program will only direct 50% of the daily staking revenue exceeding $109K to the buyback program, which translates to a $40 million annual revenue baseline. This means that if the daily staking revenue remains below $109K, there will be no buyback.

Unlike other protocols, Lido's buyback plan was previously criticized for being too low, with Hyperliquid doing about $100M in annual buyback and Aster and Uniswap running a $40M annual program. The bought LDO tokens won't be burned but will be owned by the DAO treasury.