Lido’s Dual Governance Goes Live July 4 – Here’s Why It Matters
Lido just leveled up. The staking giant's dual governance proposal passed with flying colors—now it's locking into the blockchain by Independence Day.
Power shift incoming. This upgrade splits decision-making between LDO holders and node operators, creating checks and balances that could reshape DeFi's biggest staking protocol.
Timing is everything. The July 4 rollout gives crypto traders something to watch between hot dog eating contests—because nothing says 'freedom' like decentralized governance fighting Wall Street's custody monopoly.
One cynical footnote: The vote passed with typical crypto 'decentralization'—meaning whales still call the shots, just with fancier voting mechanics.
Positive reactions trail Dual Governance approval
Meanwhile, the community’s reaction to the approval has been positive, with many noting that Lido has always been a pioneer. The protocol already dominates the Ethereum staking category with 25% of the market share due to having over 9 million ETH staked.
However, many expect its adoption to increase further with this new governance model. Lido Strategic advisor, the pseudonymous Hasu, noted that this new governance will improve the quality of proposals that can be passed on Lido and prevent any hostile takeover of the protocol, making it one of the most secure liquid staking products.
Hasu shared his view on the Unchained podcast with Laura Shin, adding that he expects the protocol to attract more users given its improved security since stakers no longer have to worry about the DAO approving any proposal that will harm them.
Interestingly, the protocol is already working on its newest version, which will bring new features to Lido. The v3 has already launched on the testnet and aims to bring customizable modular staking to Ethereum. One of the key features in the Lido v3 is stVaults, a personalized staking solution that allows users to set up their staking products.
LDO continues to struggle
Meanwhile, the recent development did not positively impact the Lido token LDO, which is down 5.46% today. The token has been struggling throughout the year, falling 60.85% year-to-date, with no signs of recovery.
Although it is unclear why LDO is struggling, many have expressed concerns that the new governance model could further affect the token. However, Hasu believes that dual governance will have a positive impact on LDOs because it only strengthens the network and prevents bad decisions.
He said:
“The value of LDO does not come from the ability to make negative proposals.”
Thus, he expects that the improved security on the protocol could further onboard more users and boost LDO value over time.
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