. @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:
1️⃣ 1% stETH TVL → delays execution (veto signal)
2️⃣ 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 👇
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