Lido Introduces New Dual Governance System
- Lido launches a new governance model on May 9, 2025.
- Sam Kozin leads Lido’s dual governance initiative.
- Expected impacts on Ethereum staking dynamics.
Lido has unveiled a dual governance proposal, led by Sam Kozin, seeking balance between LDO token holders and stETH stakers. The proposal was announced on May 9, 2025, on the Lido research forum.
Lido’s proposed governance change aims to realign incentives between stakers and token holders. Sam Kozin highlights the model’s potential to balance power dynamics in Ethereum staking.
The dual governance mechanism is facilitated by Lido’s DAO, which currently governs via on-chain voting. The proposal introduces a two-tiered threshold for triggering governance actions within Lido’s Ethereum operations.
The model’s financial impact involves specific TVL thresholds, which may influence stakeholder decisions and Ethereum’s staking landscape. The mechanism allows stETH holders to exit in case of contentious DAO actions.
“The transition from multichain to dual governance is necessary to address misaligned incentives between LDO holders and stakers.” — Sam Kozin, Lead Smart Contract Developer, Lido
The mechanism proposes a timelock system allowing stETH holders to leave before impactful decisions. This modifies traditional governance by providing a safeguard against misaligned token holder incentives.
Lido expects significant regulatory and technological shifts due to this proposal. Data suggest that evolving decentralized governance models could influence broader DeFi market dynamics, potentially altering stakeholder strategies within the ecosystem.
