I understand why LDO holders are concerned about price performance. The trend in this thread seems to be that revshare with LDO holders would be the solution.
In my view there are two separate questions.
1. The case for NEST / liquid buybacks
NEST is a mechanism that should remove LDO from circulation and following the laws of economics, all things being equal, less supply would mean an increase in price.
Thing is… market conditions suck and conditions for NEST to trigger seem far away. So we are left with a mechanism that doesn’t trigger in bear markets. But wait… this is by design:
So there is a logic behind NEST, but in times like now, where the execution seems far away and the action happens very far away from the realm of even considering triggering NEST, we might need to find another mechanism that supports LDO price to address the concerns that holders are losing USD denominated value.
2. The practicality of alternative value-accrual mechanisms
In principle, I understand the appeal of mechanisms that give LDO a more explicit economic utility. I’m simplifying a lot, but let’s say that we still maintain the revenue >40M. We want to maintain this because we want to make sure we can continue operations, and reinvest in the protocol growth. If we spend all revenue by giving away to LDO holders… duh, we eat today but we’re burning the protocol to the ground and we’ll be hungry tomorrow.
So, maintaining this >40M revenue, looking at the report: GOOSE-2025 & EGGs-2025 Final Report that’d give us… 0.5M.
These mechanisms (like LDO staking) are not cheap to design, implement, govern and maintain, so we would probably end up spending way too many resources implementing it for a meagre distribution that would make nobody happy anyway. In summary, the juice is not worth the squeeze.
EVEN if it was free to implement, or we did direct distributions to LDO holders (just airdrop stETH), it would be not a lot of money for individuals and we would be depriving the DAO from treasury that it might need to survive, grow and get better.
It’s normal to feel like everything is going to shit, portfolios are red, we’re down bad… but trying to maxx extract from one of the DAOs that have proven solid, with product and will weather the storm and grow could prove very short-sighted.