Lido DAO approves dual governance model proposal

Double governance, a major update that will give STETH holders more control over the important decisions of the protocol, has been officially approved by Lido Dao.

The decision was confirmed on June 30 job on X by Lido, after a successful vote of Lido Dao holders (Ldo) Damn. The new system should be launched on the channel on July 4. A dynamic timerlock mechanism introduced by double governance allows STETH holders to block or delay the proposals approved by LDO holders if they disagree.

The more steth locked in opposition, the longer the delay. An additional timer of 5 to 45 days is added to any proposal if at least 1% of the entire Steth’s offer is locked in protest. When 10% of opposition is reached, a “resignation of rage” is triggered, which completely stops governance activities until the opposite stakers have left the protocol.

The functionality aims to mitigate the risk of governance capture and to guarantee that Ethereum (Ethn) Stakers are not excluded from the governance decisions with which they do not agree. It solves long -standing problems concerning the disparity of power between those who actively mark the ETH through Lido and those who hold LDO.

According to Lido, the new system acts both as a discord signal and a safety mechanism. This structure aims to prevent precipitated or potentially harmful proposals from being executed without giving attackers time to answer. This also gives those who mark ETH through Lido a clearer path to go out if they disagree with the management of the DAO.

The design also incorporates several security measures, such as a committee to be attended to control delays, an equal breakdown committee to get deadlines and an emergency committee to intervene in the event of critical failure.

The LDO token did not respond positively to the update. It dropped by 2% on the last day and 13% last month, indicating that the market is careful as the new system is implemented.

To date, the framework of double governance marks one of the most advanced DAO structure Introduced in decentralized finance. By aligning the incentives between stakers and tokens holders, Lido hopes to create a more resilient and inclusive governance process for Ethereum.