Lido’s buybacks won’t fix the bigger problem

Lido has initiated a ~$4 million annual buyback plan in an attempt to improve its standing, coinciding with a roadmap that aims to expand beyond staking services. However, the overall market sentiment remains cautious, particularly as Strategy (MSTR) has seen its shares drop below the mNAV of 1, raising doubts about the long-term viability of similar treasury models. The broader market showed declines, particularly in tech stocks, while some segments like Layer 2s and Memecoins performed modestly better. Lido's approach seeks to allocate 50% of staking revenue above certain thresholds into buybacks, but the low amount and the operational challenges the DAO faces, including unprofitability, raise questions about whether these strategies are effective. The market remains skeptical of treasury companies, and while Lido plans to transition to a multi-product platform, its buyback strategy may lack the necessary impact, particularly if it addresses a market already in decline.

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