Lido DAO has announced the launch of its highly anticipated dual governance system, which will significantly enhance the influence of stETH holders in protocol decisions.
Confirmation of Dual Governance Launch
On June 30, Lido DAO officially confirmed the launch of its dual governance system through a post on its official X page, following a successful community vote.
Dynamic Timelock Mechanism
The new governance structure allows stETH holders to block or delay proposals passed by LDO token holders if they disagree. This is enabled through a dynamic timelock mechanism that proportionally delays decisions based on the volume of stETH locked in opposition.
Benefits of the New System and Safety Measures
Dual Governance is designed to prevent governance capture and ensure that Ethereum stakers have meaningful participation in decisions affecting the protocol. It includes multiple safety layers, such as a Reseal Committee and a Tiebreaker Committee, to help prevent rushed or harmful proposals and provide a clear exit route for dissatisfied stakers.
Dual Governance is widely regarded as one of the most sophisticated DAO models in decentralized finance, aiming to align incentives between stakers and token holders.
