Particle.news
Download on the App Store

Lido Token Falls on Proposed Ethereum Burn as Final NEST Vote Begins

Lido plans to tie buybacks to surplus staking fees that will depend on future validator issuance set by EIP-8361.

Overview

  • LDO dropped about 16% after traders priced in EIP-8361, a draft proposal to burn a rising share of validator issuance that would lower staking rewards as more ETH is staked.
  • Trading activity spiked during the selloff, with a reported 24-hour volume surge of roughly 230% and rising exchange inflows as holders repositioned their stakes.
  • Derivatives open interest climbed about 14%, showing that traders opened new leveraged positions even as spot prices fell and volatility rose.
  • Lido DAO opened the final on-chain vote for the NEST automated buyback and liquidity system on Aug. 5, with the main voting phase scheduled to close on Aug. 8 at 2:00 p.m. UTC.
  • NEST would funnel a share of eligible surplus staking revenue into LDO purchases and DAO-owned Curve liquidity under a $40 million baseline and daily and annual caps, so its actual buying power depends on Lido’s future fee revenue if EIP-8361 is adopted.