Lido’s Dual Governance Proposal May Grant stETH Holders Greater Influence Over Protocol Decisions

Key Points

1. The Dual Governance system includes a dynamic timelock mechanism allowing stETH holders to delay proposals based on opposition levels (5-45 days for ≥1% opposition, with a 'rage quit' option at 10%).

2. This update addresses the historical imbalance where LDO token holders had predominant control, ensuring stETH holders have a meaningful voice in protocol decisions.

3. The framework aims to mitigate governance risks by incorporating safety committees and timelocks to prevent rushed or harmful proposals.

4. Lido's approach may set a precedent for other decentralized projects, promoting balanced power distribution and stakeholder trust in DAO governance.

5. The announcement coincided with a 2% daily and 13% monthly decline in LDO token price, reflecting market reaction to the governance changes.