Catenaa, Sunday, July 06, 2025- Ethereum’s largest staking protocol, Lido, has voted to implement a dual governance system that grants stakers the power to delay or veto decisions made by LDO token holders. The proposal passed with near-unanimous support but narrowly surpassed the quorum threshold.
Under the new structure, stakers holding stETH tokens can register dissent by locking their tokens in an escrow contract. If at least 1% of staked ETH is locked, a proposal is delayed for five days; greater lockups increase delay time.
Should 10% of stETH supply be locked, the proposal is frozen and the protocol enters a Rage-Quit state, halting new proposals until dissenting stakers withdraw or the measure is dropped.
This change aims to protect stakers and the Ethereum ecosystem from potentially harmful governance decisions by LDO token holders, who currently control proposal creation and voting.
Ethereum co-founder Vitalik Buterin endorsed the model as an important safeguard that allows stakers to act as stakeholders in the ecosystem.
