Lido DAO exposes token flaw and forces a budget review

Lido’s DAO is debating whether its 2027 grant budget should guide automated purchases of the LDO governance token.The Oct. 7 discussion puts two choices on the table: link NEST’s revenue threshold to approved spending, or periodically clear the buyback engine’s negative spending counter.NEST had made no purchases funded by its allocator when checked on Oct. 13. Genuine cost cuts could leave more income available for buying, while a reset would only remove past constraints.Governance contributor Kuzmich proposed the budget link on Oct. 7. In an Oct. 9 response, Jenya_K supported considering it in the 2027 grant request, but said the amount must come from bottom-up planning.Kuzmich’s Oct. 11 follow-up corrected the treatment of staking rebates and tested profits without assumed treasury income.What the counter measuresUnder Lido’s implemented specification, NEST compares measured staking revenue with a daily baseline of $109,589, approximately $40 million a year. Half the difference feeds a running spending counter.Revenue below the baseline subtracts from that counter, and stronger revenue must repair the shortfall before purchases can start. A treasury can hold assets while the cou...