Lido DAO approves dual governance granting veto power to holders

2025-07-06 01:15:21

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The largest Ethereum staking protocol, Lido, has passed a proposal to establish a dual governance system, allowing stETH stakers to delay or veto decisions made by LDO token holders. The proposal was supported almost unanimously, just enough to surpass the minimum voting threshold.

Under the new mechanism, if 1% of stETH is locked in the escrow contract, the proposal will be delayed by 5 days. If 10% of the stETH supply is locked, the proposal is frozen and the protocol enters a “Rage-Quit” state, temporarily halting new proposals until the objector withdraws or the proposal is canceled.

This change aims to protect stakers from governance decisions that could be harmful. Vitalik Buterin supports the model, calling it an important safeguard that helps stakers become real stakeholders in the Ethereum ecosystem.

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