Key Takeaways:
- Lido DAO community members proposed a plan to introduce staking and token buyback.
- Meanwhile, LDO prices outperformed the majority of the market.
NEW DELHI (CoinChapter.com) — Token staking might be coming to Lido DAO (LDO) if a new proposal by community members gets approval.
The proposal by user pseudonymous user ‘lidomaxi‘ tabled the proposal to introduce an LDO staking module and token buyback program on the platform.
The user noted that despite Lido DAO’s growth over the past few years, LDO token holders had not benefitted from the revenue generated by the platform. Furthermore, the proposal highlighted that LDO had no ‘direct utility.‘
Lidomaxi proposed redistributing 20-50% of ‘future Lido DAO revenue‘ among LDO stakers. The proposal noted that current treasury reserves for Lido DAO ($280 million) were sufficient to ensure revenue redirection did not impact operations.
Additionally, the proposed revenue share mechanism would distribute revenue in LDO tokens to stakers weekly. However, the protocol would lock the ‘earned‘ tokens for six months before distribution.
The proposal also included plans to create an insurance fund for the Lido DAO with around 6,000 stETH. A dip in the fund reserves would require the protocol to redirect revenue from stakers to reestablish the minimum reserves.
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Furthermore, stakers would have to wait for a 14-day cooldown period when unstaking.
Several users reacted positively to the proposal, with some offering suggestions for further improvement. For example, a user ‘monet supply’ noted that the 6,000 ETH insurance fund might not be sufficient for self-insuring the protocol against moderate losses.
Another user stated it was an “awesome proposal” and was excited “to see it put forward to a vote.”
LDO Price Action Outperforms Peers
Meanwhile, the LDO price action over the past seven days has outperformed its peers like Bitcoin (-0.34%), Ethereum (0.2%), etc., despite falling 7.2% to a daily low of $2.19. The downtrend occurred after the Lido DAO token rallied nearly 62% from May 12 to a daily high of $2.56 on May 16.
Ethereum staking deposits dwindled immediately after the Shapella upgrade. However, deposits started recovering afterward, highlighting traders’ interest in staking. Being the biggest ETH staking platform, Lido DAO has likely benefitted from the activity.
Therefore, if bulls successfully defend the 100-day EMA (blue wave) trendline support, LDO price might rise to $2.362. Moreover, breaking above the immediate resistance could see the Lido DAO token challenge resistance near $2.72 before downside corrections pare gains.
Conversely, if the EMA support fails, the LDO price might drop to the 200-day EMA (green wave) and 20-day EMA (red wave) support confluence near $2.05. Breaching the confluence support might force LDO price to test support near $1.832 before recovering.
The relative strength index for LDO remained neutral, clocking at 55.18 on the daily charts.
