What is the purpose of the lido token?

The LDO token serves as a cornerstone in the governance structure of the Lido DAO, empowering its holders with significant decision-making rights. These rights extend to various aspects of the DAO's operations, including the ability to influence the appointment and dismissal of Lido node operators.

The LDO token's governance function also encompasses a role in managing fee parameters, ensuring that the DAO's financial policies align with the interests of its community. Holders can participate in shaping these policies, contributing to the overall health and sustainability of the ecosystem.

The distribution of rewards and incentives within the Lido DAO is another area where LDO token holders can exert their influence. By participating in governance, they can help determine how rewards are allocated, fostering a sense of fairness and transparency within the community.

The strength of a user's vote within the Lido DAO is directly proportional to the number of LDO coins they hold. This mechanism encourages participation and investment in the ecosystem, as those with a larger stake have a more significant say in shaping its future.

In addition to its governance role, the LDO token also serves as a utility token within the Lido ecosystem. It can be used to access various services and features offered by the platform, further enhancing its value and appeal to users.