A final vote, set to conclude by June 30, could usher in a new mechanism that balances power across the […]
The post Lido Moves Toward Shared Governance with stETH Holders appeared first on Coindoo.
A final vote, set to conclude by June 30, could usher in a new mechanism that balances power across the platform’s user base.
The proposed system, known as “Dual Governance,” would give stETH users the ability to delay the execution of DAO proposals they find problematic. Unlike traditional timelocks, Lido’s version dynamically extends the waiting period depending on how much opposition the proposal faces. If a significant portion of stETH holders object, delays could stretch up to 45 days — giving users time to exit before a change takes effect.
This flexible approach addresses one of the biggest frictions in liquid staking: users need time to react to governance actions, especially when ETH withdrawal queues can take weeks. Rather than applying a one-size-fits-all delay, the protocol adjusts based on how controversial a proposal is.
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The framework has been years in the making. Contributors like Hasu and Victor “kadmil” say the system has been stress-tested, including simulations involving flash loans. Wrapped versions of stETH used in yield strategies aren’t eligible to vote directly, but can be withdrawn to gain voting rights.
By effectively decoupling voting power from execution authority, Lido aims to resolve the long-standing dilemma between trust and liquidity in DeFi governance. The model has already gained early approval in a Snapshot vote and, if passed on-chain, could inspire similar frameworks across other decentralized protocols.
This isn’t just a governance update — it’s a structural shift that could redefine how user protections and protocol upgrades coexist.
The post Lido Moves Toward Shared Governance with stETH Holders appeared first on Coindoo.
Source: https://coindoo.com/lido-moves-toward-shared-governance-with-steth-holders/
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