Lido DAO revisits its token buyback plan after LDO price hits a historic low. On Tuesday, data showed that the LDO price rebounded from $0.27 to $0.32, an increase of about 18%, drawing market attention. This is the second time in five months that Lido has proposed a buyback plan, aiming to alleviate investor concerns about the value of governance tokens.

Lido DAO is currently the second-largest protocol on Ethereum, with user deposits approaching $19 billion. Despite its successful business, the LDO token price has fallen to a historic low, sparking community doubts about the economic model of governance tokens. Some members pointed out that LDO mainly represents voting rights rather than dividend-paying shares, and its price depends more on the willingness of subsequent buyers to purchase.

A one-time token buyback of $20 million will be conducted. The foundation stated that this move is a market opportunity where the LDO price is seriously disconnected from the protocol's fundamentals, and it is not a supplement or replacement for previous buyback plans. The proposal has received community support, reflecting DAO members' desire to stabilize the market and boost investor confidence through direct measures. Some members believe that using idle staked Ethereum for buyback of LDO is a wise move that could help mitigate market undervaluation.

However, the market is still watching to see if the LDO price rebound is sustainable. Analysts note that this rally may be a short-term rebound, and the long-term value will still depend on the attractiveness of the governance token model and the recovery of staked Ethereum share. The future strategy execution and market response of Lido DAO will be key factors in determining the trend of LDO prices.