Lido DAO Proposes Dual Governance Model Granting stETH Holders Potential Veto Powers
The post Lido DAO Proposes Dual Governance Model Granting stETH Holders Potential Veto Powers appeared on BitcoinEthereumNews.com.
Lido DAO has implemented a pioneering dual governance model, empowering stETH holders with veto rights to enhance decentralized control within the Ethereum staking ecosystem. This governance innovation introduces dynamic timelocks and scaled veto thresholds, aiming to mitigate risks associated with centralized decision-making in DeFi protocols. According to COINOTAG, expert Hasu emphasizes that this model “reduces risk that users have from any kind of governance attack and the trust that they need in the maintainer companies and the LDO holders.” Lido DAO’s new dual governance structure grants stETH holders veto power, enhancing decentralization and risk mitigation in Ethereum staking governance. ‘, ‘ 🚀 Advanced Trading Tools Await You!Maximize your potential. Join now and start trading! ‘, ‘ 📈 Professional Trading PlatformLeverage advanced tools and a wide range of coins to boost your investments. Sign up now! ‘ ]; var adplace = document.getElementById(“ads-bitget”); if (adplace) { var sessperindex = parseInt(sessionStorage.getItem(“adsindexBitget”)); var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesBitget.length) : sessperindex; adplace.innerHTML = adscodesBitget[adsindex]; sessperindex = adsindex === adscodesBitget.length – 1 ? 0 : adsindex + 1; sessionStorage.setItem(“adsindexBitget”, sessperindex); } })(); Lido DAO’s Dual Governance Model: Empowering stETH Holders with Veto Authority On June 29, 2025, Lido DAO formally adopted a dual governance framework that significantly reshapes its decision-making process. This model introduces a novel mechanism whereby stETH holders—those who stake Ethereum through Lido—acquire the ability to delay or veto proposals initiated by LDO token holders. The governance change was approved with overwhelming support, securing 53.6 million LDO tokens in favor, just surpassing the required quorum. The new structure activates when at least 1% of the total staked ETH signals opposition, triggering a five-day delay on proposals. If dissent reaches 10%, proposals can be frozen entirely, granting stETH holders substantial influence over governance outcomes. This approach aims to balance power between token holders…
Filed under: News - @ June 29, 2025 5:11 am