Lido DAO launches NEST automated buyback on-chain voting, proposing a mechanism that links protocol performance with LDO tokens

Lido Finance officially released a governance update, and Lido DAO has officially opened on-chain voting for the NEST automated buyback mechanism, with the voting window from August 5 to August 8 at 14:00 UTC.

NEST is a set of automated, rule-based on-chain mechanisms that directly link the performance of the Lido protocol with the LDO token. The relevant design and parameters were approved through Snapshot voting in May. The core logic of NEST is to systematically buy back LDO tokens in decentralized markets through protocol revenue or liquidity controlled by the protocol, thereby continuously capturing the value growth of the protocol at the token level. The execution of the mechanism will revolve around the liquidity pair of LDO and wstETH, and specific implementation details are still being updated in the community forum.

If this on-chain vote is approved, Lido will shift from a buyback plan driven by periodic governance to a continuous, predictable automated value distribution model.