Lido’s decentralized autonomous organization is considering a one-off $20 million buyback of its governance token to address so-called price dislocation, which is at “historically depressed levels” relative to Ether, according to the DAO.
The proposal, submitted Friday, seeks permission to swap 10,000 Lido Staked Ether (stETH) tokens, currently worth $20 million from the DAO’s treasury for Lido DAO, arguing that LDO is undervalued.
A token buyback of this size could boost the price of the token, which has fallen roughly 96% from its all-time high. In November, a Lido DAO member pitched an automated buyback mechanism for LDO to improve the token’s price. However, that proposal hasn’t been implemented.
Lido DAO proposed buying up to 10,000 stETH in smaller batches of 1,000 to buy LDO. Lido DAO said it would use limit orders or adopt a dollar-cost averaging strategy to avoid market volatility.
Source: Trading View
Source: Research.Lido.Fi
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