Lido DAO exposes token flaw and forces a budget review
Lido contributors are debating whether to tie NEST’s automated LDO buybacks to the DAO’s 2027 grant budget or periodically reset its negative spending counter. NEST had made no allocator-funded purchases by Oct. 13, when its counter stood at -$564,231; purchases also require funded stETH and are subject to daily and annual caps. Modeling suggests genuine spending cuts improve the DAO’s profit balance, while lowering the revenue threshold alone can enable more buying even when operations lose money. Annual resets modestly increase modeled spending and the share of purchase-making periods that end in losses. The simulations are assumption-dependent, and a reset would require a separate implementation or governance arrangement. Any purchased LDO remains in the treasury; there is no automatic burn or holder payout.
