. @LidoFinance has just introduced Dual Governance - the most important safety design for stETH holders 👇 TLDR; Dual Governance is a dynamic timelock system designed to protect stETH holders from malicious or highly controversial Lido DAO proposals. It gives stETH holders a structured way to block execution and safely exit Why does Dual Governance matter? - It protects stETH holders against DAO attack - First-of-its-kind onchain exit mechanism for liquid staking - Provides safe de-escalation for community disputes How it works: - When a DAO proposal is passed, a timelock contract delays execution - stETH holders can deposit into an escrow to signal objection - The more tokens locked, the stronger the effect 2 trigger levels: 1ïžâƒŁ 1% stETH TVL → delays execution (veto signal) 2ïžâƒŁ 10% stETH TVL → full rage quit (freezes the proposal until all escrowed stETH is redeemed for ETH) Extra protections: - Min proposal delay: 3 days - Dynamic timelock: 5 to 45 days, depending on how much stETH is locked - Emergency committees can intervene in extreme situations - Rage quit withdrawal delays to prevent abuse Read full proposal here 👇
Dual Governance: Coming Soon Years in the making, Lido DAO contributors are proud to present an outline for the upcoming release of Dual Governance featuring design & code choices, parameters, deployment & rollout.
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