[Lido Explains NEST Mechanism: Initially Adopting 'Treasury-Only Mode,' Future Transition to LP Mode via On-Chain Voting] Deep Tide TechFlow reports that on August 14, Ethereum staking protocol Lido DAO released an official article explaining the NEST (Network Economic Support Tokenomics) mechanism. This mechanism uses an automated on-chain approach to link protocol revenue with the value of the LDO token, enabling continuous LDO buybacks and aiming to allow LDO holders to more directly share in the protocol's growth benefits. The mechanism is supported by surplus funds from the DAO treasury. When Lido's staking business revenue exceeds a set baseline, a portion of the excess revenue will be automatically swapped for LDO via CoW Swap. According to the initial parameters set by Lido DAO, the NEST revenue baseline is an annualized $40 million (approximately $109,000 per day). Fifty percent of the excess revenue will be used to buy back LDO, with a daily buyback cap of $50,000 and an annual cap of $10 million over 365 days. The buybacks will be executed daily through a permissionless on-chain process. At the initial launch of NEST, the 'Treasury-Only Mode' will be adopted, where the purchased LDO will go directly into the DAO treasury. In the future, when market conditions are favorable, the DAO can transition to the LP mode via on-chain voting. In this mode, half of the funds will be used to purchase LDO, while the other half will be converted into wstETH and used to provide liquidity on Curve.