Lido DAO Enables Dual Governance for Stakers
Lido, Ethereum's leading liquid staking protocol, is empowering its stakers with new governance rights through a dual governance system. This change enables those holding stETH tokens to delay or block DAO proposals that may negatively impact them or Ethereum. If certain thresholds of stETH are deposited in protest, proposals can be delayed or frozen, allowing stakers time to gather support. This significant upgrade was approved with majority votes from LDO token holders and is aimed at protecting stakeholders from harmful governance decisions. Despite some criticism, Ethereum's co-founder Vitalik Buterin supports the measure as a defense layer against adverse actions. The change has also slightly boosted LDO's market value.
FAQ
❓ What is Lido DAO's dual governance?
It's a system that allows stakers to delay or veto DAO proposals, ensuring their interests are protected.
❓ How can stakers influence proposals?
Stakers use stETH tokens in an escrow to signal dissent. If enough tokens are deposited, proposals can be delayed or frozen.
❓ What was the outcome of the recent vote?
The proposal for dual governance was passed with a slight majority, highlighting strong support from LDO token holders.