Lido DAO launches an on-chain vote for NEST automated repurchases; the proposed mechanism ties the protocol’s performance to the LDO token.
2026.08.05 23:32:57
Lido Finance has released a governance update, announcing that Lido DAO has officially opened on-chain voting for the NEST automated token buyback mechanism. The main voting window runs from August 5 to August 8 at 14:00 UTC. NEST is an automated, rule-based on-chain mechanism that directly ties the Lido Protocol’s performance to its native LDO token. The mechanism’s design and parameters were approved via Snapshot voting back in May. At its core, NEST uses protocol revenue or protocol-controlled liquidity to systematically repurchase LDO tokens on decentralized markets, enabling continuous capture of protocol value growth at the token level. The mechanism will be rolled out around the LDO/wstETH liquidity pair, with specific implementation details still being updated on community forums. Should the on-chain vote pass, Lido will transition from a periodic, governance-driven buyback model to a continuous, predictable automated value distribution framework.
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