Lido DAO prices rebound 5%, NEST vote officially starts

Lido DAO prices rebound more than 5% as NEST proposal vote is underway

Lido DAO (LDO) prices rebounded more than 5% on Thursday. Currently, token holders are voting on the NEST automated repurchase system. However, the market is concerned about Ethereum's proposed pledge rule changes, which continues to put pressure on LDO prices.

Market Summary

Lido DAO prices rose 5.2% in 24 hours after briefly falling to $0.2757. The token has still fallen 16.7% in the past seven days, but its monthly gain is about 5%. NEST voting for Lido DAO will close at 2:00 pm UTC on August 8. Ethereum's proposed EIP-8361 has raised concerns about Lido's future pledge earnings.

Lido DAO prices rebounded after a 16% weekly decline

As of press time, Lido DAO (LDO) was trading at approximately US$0.293. The token has fluctuated between US$0.2757 and US$0.3048 in the past 24 hours, before rebounding approximately 5.2%. Despite the rebound, LDO prices have fallen by about 16.7% in the past week, underperforming the cryptocurrency market, which has gained about 1.3% over the same period.

Monthly performance is more positive. After rising in July, LDO prices still recorded an increase of about 5.1% in 30 days. The token rose by about 65% last month, but encountered resistance around $0.40. Trading volume in the past 24 hours was approximately $62.2 million, down 11% from the previous day, indicating that market participation has cooled after the initial sell-off.

Ethereum pledge proposal puts pressure on LDO

As discussions in the Ethereum community about EIP-8361 (the "cone release destruction" proposal) heat up, LDO's weekly decline has accelerated. The proposal proposes that as the proportion of ETH used for pledge increases, an increasing proportion of verifier issuance rewards will be destroyed. When about 50% of Ethereum's supply is pledged, issue-based rewards may eventually approach zero. EIP-8361 is still in the draft stage and has not yet been approved for implementation. However, traders appear to have begun to factor their potential impact on liquidity pledge providers into pricing considerations.

Lower Ethereum pledge rewards may reduce the appeal of products such as Lido's stETH. Reduced demand may affect the agreement's total lockup value, fees and DAO revenue. Critics involved in the discussions warned that lower rewards could force higher-cost independent validators to exit first, while retaining large providers that can spread costs among thousands of validators. The authors of the proposal believe that terminating issuance incentives after the pledge ratio exceeds 50%, will limit ETH circulation and reduce the risk of excessive pledge concentration.

NEST votes to link Lido revenue to LDO

Lido DAO has launched the final on-chain vote on its NEST automated repo and liquidity system on August 5. The main voting phase will end at 2:00 pm UTC on August 8. NEST (Network Economy Supported Token Economics) will allocate part of Lido's eligible earnings surplus to LDO buybacks and DAO's liquidity.

The proposed mechanism sets a baseline of $40 million in annual pledge revenue. When daily income exceeds this baseline, 50% of the eligible surplus can enter NEST, with a daily limit of $50,000 and a rolling cap of $10 million per year. Based on the initial liquidity pool configuration, half of the eligible budget will be purchased through CoW Swap, and the other half will be converted to wstETH and paired with the obtained LDO in the Curve liquidity pool. Lido DAO will retain ownership of the resulting liquidity provider tokens, and the purchased LDOs will not be destroyed. Previously, a Snapshot vote to approve the final NEST design was passed with a support rate of 52.37 million LDOs (94.5% of the number of tokens participating in the voting).

LDO prices remain below key resistance

The daily chart shows that LDO rebounded after briefly falling to US$0.2751. The resulting longer lower hatching indicates buyers entering near the $0.275 to $0.280 support area. However, the price is still slightly below the lower limit of $0.2946. The middle rail of the Bollinger Band is at US$0.3577, much higher than the current price, and the upper rail is close to US$0.4208.

The daily RSI has dropped to 37.57, still below its signal average of 53.56. The reading suggests that short momentum has weakened the July uptrend, but the LDO has not yet entered deep oversold territory. If the close falls below $0.275, it may test further below $0.250 and near the June low of $0.235. Conversely, recovering $0.305 will be the first signal of recovery. Subsequently, the LDO will face resistance in the US$0.320 to US$0.330 region and near US$0.358 in the Bollinger Band Middle Rail.

NEST voting provides a potential token value mechanism, but its future purchasing power depends on whether Lido can generate enough pledge revenue. This makes EIP-8361 and the broader Ethereum pledge debate a key risk for LDO holders.