Lido DAO is set to implement Dual Governance, which will be determined by a vote of LDO holders on June 30. This proposal aims to give stETH holders, whose ether is staked via Lido, the ability to delay or veto governance actions, adding accountability to the voting system. If approved, if 1% of the total stETH supply opposes a proposal, execution will be delayed by five days, and if opposition reaches 10%, the delay extends up to 45 days. This mechanism addresses the risk of governance attacks, allowing stETH users to exit before controversial decisions take effect. Traditional governance systems offer fixed delays, which may not suffice in Lido's case, hence the need for a dynamic timelock that adjusts based on user opposition. The design has undergone stress testing to ensure resistance against governance manipulation. The initiative promotes a balance between providing liquidity and minimizing trust assumptions in governance, providing a model potentially applicable to other protocols. An earlier vote showed strong support for the proposal, which if passed, will decouple proposing measures from executing them, placing stETH holders in a constitutional oversight role.

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