On June 29, 2025, Lido DAO approved the implementation of a dual governance model, providing stETH holders with the ability to influence proposals and decisions.
New Governance Structure of Lido DAO
Lido DAO has passed a proposal to introduce a new governance structure, which enables both LDO and stETH token holders to participate in the decision-making process. The changes were approved nearly unanimously, with 53.6 million LDO tokens voting in favor, achieving the necessary quorum.
Impact of the New Model on the Community
The new model allows stakers to delay or veto decisions made by LDO token holders. If more than 1% of the total staked ETH signals dissent, proposals are delayed by 5 days or blocked upon reaching a 10% threshold. Expert Hasu commented that this governance "reduces the risk that users have from any kind of governance attack and the trust that they need in the maintainer companies and the LDO holders."
Current Situation with LDO Token
As of the implementation of the new model on June 29, 2025, the LDO token is trading at $0.72, with a market cap of $643.07 million. This step may expand interest among institutional investors by reducing centralization risks and providing more robust governance mechanisms.
The transition to a dual governance model for Lido DAO highlights a commitment to decentralization and enhances the influence of stETH holders, potentially transforming governance in DeFi.
