A Major Update and Change Has Arrived in Important Altcoin! Vitalik Buterin Also Made a Statement!

Ethereum's largest liquid staking protocol, Lido, is undergoing a fundamental change in its governance structure. Lido DAO members have largely approved by consensus a bi-directional governance system that grants stakers the authority to delay or veto governance proposals to (stETH holders.

The new system introduces a balancing element to the current governance model where only Lido token holders can submit proposals and participate in voting. The aim is to prevent LDO holders from approving a proposal that would negatively impact Lido's stakers or the Ethereum ecosystem.

According to the new structure, stakers, or stETH token holders, will be able to register their objections by depositing their stETH assets into a special "escrow contract" to show that they are against a governance proposal. If stETH worth 1% of the total staked ETH is deposited into this contract, the relevant proposal will initially be postponed for 5 days. As this ratio increases, the postponement period will also extend.

If a threshold of 10% is exceeded, the proposal will be completely "frozen" and the protocol will enter "Rage-Quit" ) anger exit ( mode. In this case, either the protesting stakers will withdraw all their assets, or Lido DAO will completely cancel the relevant proposal. No new proposals can be implemented during this process.

The main stage of the voting was completed with 53.6 million LDO votes in favor of "Yes". This number is just above the required quorum of 50 million LDO. Only a single person cast a "No" vote of 1.18 LDO. These results indicate a participation rate similar to previous Lido DAO votes.

In the voting process, during the remaining "objection" phase, only LDO holders have the right to cast a "No" vote or change their existing votes from "Yes" to "No". At this stage, unless a large-scale organized counter-campaign emerges, the proposal is expected to be finalized on June 30 at 17:00 )TSI(.

Ethereum co-founder Vitalik Buterin made a statement supporting dual governance. Buterin emphasized that this structure creates an independent security layer "especially against harmful actions" and ensures that Ethereum stakers are positioned as true stakeholders within the Lido ecosystem.

The Lido team described this change as "one of the most important protocol upgrades across the Lido ecosystem."

*This is not investment advice.

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