A Lido community member, who goes by the screen name “lidomaxi,” created a governance proposal Wednesday to increase the utility of Lido’s native governance token LDO by introducing staking and a buyback program for the token.
The proposal includes an insurance fund for the Lido DAO as well as a revenue-sharing parameter that would redirect 20-50% of “future Lido DAO revenue from the protocol treasury to stakers of $LDO.”
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The proposal preceded Jump Trading moving nearly 3 million LDO tokens worth $7.5 million in two transactions to a new address, according to veri analytics firms Nansen and Arkham Intelligence. LDO jas jumped nearly 15% in the day, before settling at $2.38, per CoinGecko
The proposal already has support from several community members. “There’s definitely a good case to be made for something like this,” said Steakhouse, a financial advisory firm for several decentralized autonomous organizations (DAO).
Hal Press, the founder of hedge fund North Rock Digital, wrote on Twitter that he has “been critical of LDO in the past partly because the token accrued no value,” but said if the proposal was adopted, it “would go a long way toward fixing that issue.”