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Lido Approves New Governance Model Empowering stETH Holders

Lido Approves New Governance Model Empowering stETH Holders

Lido, the leading Ethereum liquid staking protocol, is revamping its governance with a system that gives stakers a direct voice in decision-making.

The newly approved two-way structure introduces checks on LDO token holders, who currently control proposals and votes.

Under the update, stETH holders will be able to delay or block proposals by locking their tokens in an escrow contract. If 1% of total staked ETH is deposited, proposals face a 5-day delay. If that climbs to 10%, the proposal is frozen entirely, triggering a “Rage-Quit” mode — where dissenting stakers can exit, or the proposal gets scrapped.

The vote passed with overwhelming support: over 53 million LDOs voted in favor, narrowly passing the 50 million quorum. Only one token holder opposed the change. The final phase of the vote, which allows “No” votes or reversals, ends on June 30.

Ethereum’s Vitalik Buterin backed the move, calling it a vital safeguard against abuse and a way to strengthen staker rights. Lido’s team hailed the shift as one of its most important governance upgrades to date.

Author
Alexander Stefanov

Reporter at Coindoo

Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.

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