Lido Scorecard Update
Over 3 years ago, Lido began publicly tracking its path toward Ethereum alignment. Since then, every 'Needs improvement' item has been tackled, one by one.
Dual Governance is now live, and with it, the Lido Scorecard clears its final roadblocks.
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What is the Lido Scorecard?
The Scorecard is a self-assessment framework tracking how Lido is performing against the goals of being decentralized, trustless, and ethos-aligned with the Ethereum community.
Today marks a key shift.
With Dual Governance released, two major governance challenges have now been resolved:
🔴→🟢 There is a way for stakers to resist malicious governance capture
🔴→🟢 Governance has significant safeguards
There is a way for stakers to resist malicious governance capture 🟢
Lido is the first and only staking solution where stakers have a built-in rage quit path that enables safe exit when facing malicious or undesirable governance actions, thus giving stETH holders unprecedented protection.
With Dual Governance, stETH holders can delay proposal execution (at 1% of stETH supply) or trigger Rage Quit (at 10% of stETH supply) to block all governance motions until they safely exit the protocol.
This makes hostile takeovers economically impractical.
Governance has significant safeguards 🟢
To prevent rushed governance actions, LDO-approved proposals that affect core functions now include a 3-day Dual Governance delay for stETH holder review, extendable if 1% of stETH supply signals disagreement.
The more stakers disagree, the longer the delay.
This severely mitigates the likelihood and possible impact of governance capture and protects user interests, balancing the interests of different token holders to provide strong safeguards for the protocol.
From Red Flags to Green Lights
With the Dual Governance upgrade, Lido's Scorecard backlog is cleared: all items are now marked either 'Okay' or 'Good'.
Huge shout out to Lido contributors, community members and LDO token holders who kept every commitment in the Scorecard and delivered improvements on-chain, and keep working to make staking with Lido secure and decentralized.
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