Does Lido's Dual Governance Now Make It the Safest Place to Stake ETH? - Ep. 860
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think for Lido in particular, it just means that Lido, even though it's it's an upgradable smart contract system, you know, it it almost has the security of an immutable system in the sense that, you know, good proposals can pass, but bad proposals are now extremely unlikely to pass. So it basically requires all the sticky for us to be kind of asleep at the wheel. So this is now this is almost like a filter that really raises the bar for how secure, upgradable smart contract systems can be. And it I think it just flat out makes Lido the most secure staking protocol. Hi,
everyone. Welcome to Unchained, your no hype resource for all things crypto. I'm your host, Laura Shin. Every episode, we wanna feature what you have to say. Today, we have listener comments responding to my recent interview with Lee Bratcher on the state of of Texas' recently announced strategic Bitcoin reserve. On x, storm trade said, when states enter the Bitcoin game, it's not about if, but when the big money follows. And wrote, hat off. Inevitable. To hear a comment on a future show, write a review of the podcast overall or leave a comment on our video on YouTube, x, or Farcaster. This is
Laura. Good to be here. Very excited.
Yeah. Hey. Excited to chat. We have just seen that Lido has passed a dual governance proposal that will give the holders of Lido's staked ETH token a way to delay or veto Lido governance proposals. But before we dive into all the details around what just passed, why don't we first look at what it is that, you guys were trying to solve in terms of, like, what problem you were trying to solve, what issues you had with the old Lido governance model? So,
I think one of the, one of the things that makes crypto unique is, that as a user, you should always be in control. You should always be able to to exit, a protocol when you want to, and you shouldn't really have other people make decisions on you. And so when you reflect on something like a Uniswap, deployment, then clearly that's the case. Right? So there's, like, a Uniswap pool once deployed. It's immutable, and the only way to deploy a new one is actually to deploy a whole new version of Uniswap, which happens every, you know, once every one to two years. But there are some DeFi protocols
Vasily, do you wanna add anything?
The gist is correct. That's the main reason, main problem that is solved by dual governance. The it's a way to solve principal agent problem for a protocol that has to be upgradable. The one thing that I would add is that dog governance as it implemented has a multiple options for signaling and the escalation built in. So I think it's going to be useful in cases where it's not quite a governance attack. It's not quite a risk for the stakers. It's something that is not in the interest, but is not really an attack or a theft or a hack. Like, something like changing the not operator composition t
Yeah. And, you know, one other point, which, is probably obvious to a lot of people who are very familiar with with crypto, is just simply that the number of LDO token holders, the the number of people who hold the LIDO governance token is probably nowhere near as big as the number of people who all hold stake to ETH. And so, you know, it's just the main people who are using the protocol are not always the one who
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