Members of the Lido DAO are voting on whether this liquidity staking protocol should reduce the weight of the Ethereum 2.0 staking pool.
Purpose of Lido DAO’s vote
The debate was triggered by concerns that Lido‘s dominance of the ETH2 staking pool would pose a security risk to Ethereum after The Merge. Critics, including Ethereum Foundation researcher Danny Ryan, have argued that Lido’s dominance combined with the platform’s governance structure is a potential risk worth noting.
To resolve this issue, a vote has been set up:
- If you feel Lido should self-limit & staking weight, please vote “yes, let’s self-limit”. If this option is widely agreed upon, we will go to a second vote on the details.
- If you feel Lido shouldn’t limit himself, please vote “no, don’t self-limit”.
Voting began at 9 AM (UTC) on June 24 and ended at 9 AM (UTC) on July 1, following a month-long debate among community members. According to Dune Analytics, Lido currently holds more than 31% of the total staking on Ethereum 2.0’s Beacon Chain.
Lido Finance is a flexible staking protocol. Emerging because the project allows users to lock ETH to participate in the Ethereum 2.0 upgrade. In return, users will receive stETH and can ultimately bring this token to make transactions on other DeFi platforms such as MakerDAO, Aave…
With the current market situation being unpredictable, the specter of layoffs is looming over many of the top exchanges. On the side of Lido, the DeFi platform that once achieved the highest TVL in the cryptocurrency industry recently proposed to sell 10,000 ETH from the project’s general fund to cover operating costs in the next 2 years.
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