Lido empowers stakers with veto power through a dual governance mechanism

The largest staking protocol on Ethereum, Lido, has officially passed a dual governance proposal that allows users holding stETH to delay or veto governance decisions proposed by LDO holders. The proposal received overwhelming support—536 million LDO in favor, with only 1.18 against, just surpassing the 50 million legal voting threshold.

If at least 1% of staked ETH is locked by stakers in the custody contract, the proposal will be delayed by 5 days; if it reaches 10%, the proposal will be frozen, and the protocol will enter an 'angry exit' state. Ethereum founder Vitalik Buterin stated that this mechanism adds an important layer of protection to the protocol.

In the past 24 hours, LDO has risen by 3.5% and ETH by 0.8%.