Big Change: ETH Stakers Can Block Proposals from DAOs
Ethereum’s largest liquidity staking protocol – Lido – has just passed a major change to its governance mechanism , giving stETH holders (those who stake ETH) the right to delay or veto Lido DAO proposals.
Previously, only LDO token holders had the right to make and pass proposals.
This change is intended to protect the interests of the staking community from decisions that harm the Ethereum ecosystem.
Two-way objection mechanism: from delaying to “freezing” proposals
Under the new mechanism, stETH holders can object by depositing assets into a special escrow contract .
If the amount sent reaches 1% of the total ETH stake , the proposal will be postponed for 5 days ; the higher the ratio, the longer the postponement period.
If the 10% mark is exceeded, the proposal is completely “frozen” and the protocol enters a “Rage-Quit” state , allowing the opposing party to withdraw assets or force the DAO to cancel the proposal. During this time, no new proposals are accepted.
Majority of LDO holders agree, Vitalik Buterin supports
The official vote recorded 53.6 million LDO in favor , exceeding the minimum requirement of 50 million. There was only one dissenting vote.
In the final stage (the protest stage), only LDO holders can change their vote from “yes” to “no” .
Barring a major backlash, the proposal is expected to pass on June 30. Vitalik Buterin has also voiced his support for the model, calling it “ an independent layer of protection against bad behavior ” and giving real power to ETH stakers .
The Lido team calls this “ one of their most important upgrades ever . ”