Staking protocol Lido has officially launched its NEST (Network Economic Support Token) automated LDO buyback program on mainnet, marking a significant on-chain development. According to ChainCatcher reports, the program uses 50% of staking revenue exceeding a $40 million baseline to automatically purchase LDO tokens via CoW Swap. The program operates with a daily limit of $50,000 and annual purchases capped at $10 million, ensuring automatic, dynamic buybacks that respond to prevailing market conditions.
Under the NEST design, only 50% of daily staking revenue exceeding $109,000 will be directed to the buyback program. As reported by ChainCatcher, this translates to a $40 million annual revenue baseline. The mechanism includes a carry-forward provision where any shortfalls are accumulated and must be offset by future surpluses before purchases resume. The purchased LDO tokens are owned by the DAO treasury rather than being burned from circulation.
Despite the program activation, Lido's current staking rewards remain below the automatic buyback trigger level. According to DeFiLlama data, the protocol has been generating around $75,000 in daily revenue in August, which is significantly below the $109,000 threshold. The last time Lido crossed above $109,000 in daily revenue was back in April 2026 during broader Q2 recovery across the crypto market. This revenue shortfall means the buyback mechanism remains inactive at present.
The $10 million annual buyback plan appears modest compared to other protocols in the market. As reported by AMBCrypto, Hyperliquid is conducting approximately $100 million in annual buybacks, while Aster and Uniswap operate $40 million annual programs. PUMP is targeting $35 million in buyback activity, making Lido's $10 million program 3-10 times smaller than other ongoing programs in the market.
On the price charts, Lido's token has defended the $0.28 support level in August, helping to stop the July decline. According to AMBCrypto, the token has yet to show strong recovery momentum, with price action remaining below key moving averages including the 50-day EMA and 200-day MA. A decisive recovery above $0.33 could confirm strong upside potential, contingent on the moving averages being reclaimed as support levels. The buyback program's activation adds to recent token-related developments in the DeFi space, though its effectiveness remains dependent on revenue performance.
