Lido DAO Adopts Dual Governance Structure With 53.6 Million LDO Tokens in Favor

Lido DAO, a prominent Ethereum staking protocol, has introduced a dual governance structure following the approval of a key proposal. This new framework grants validators holding stETH tokens enhanced oversight, allowing them to delay or veto decisions made by LDO token holders. The governance vote received strong support, with 53.6 million LDO tokens in favor, narrowly exceeding the 50 million token approval threshold.

The revised governance model includes a mechanism where validators can express opposition by locking stETH into a dedicated custody contract. If the locked stETH reaches 1% of the total staked ETH, the proposal's implementation is delayed by five days. A 10% threshold will completely freeze the proposal, ensuring a robust system of checks and balances. The final approval of this governance update is set for June 30th at 10:00 ET, pending no significant objections during the review period.

This dual governance structure is designed to enhance the decision-making process within the Lido DAO ecosystem. By empowering stETH validators with veto power, the protocol aims to create a more inclusive and transparent governance model. This move is expected to foster greater trust and participation among stakeholders, as it ensures that critical decisions are subject to thorough scrutiny and consensus.

The implementation of this dual governance framework marks a significant milestone for Lido DAO. It reflects the protocol's commitment to evolving its governance mechanisms to better serve its community. As the Ethereum ecosystem continues to grow and evolve, such governance innovations are crucial for maintaining the integrity and sustainability of decentralized protocols.