Lido Finance, from the price locked by the largest liquid stacking platform of Etreum, has introduced a proposal that provides direct voting power to the stake ether holders with the existing Dao tokenholders.
Upgrade, dubbed lidar improvement proposal (LIP) 28, underlines a dual governance system, which allows Stath holders – who stake eths through LIDO and receive a liquid token in turn – to participate in a veto system on major protocol decisions. Currently, only holder I do,1.08Lyo’s governance tokens, say how the protocol develops.
Under the new system, stith holders may veto the proposals approved by LDO token hearing, although the veto will not be able to unilaterally proposals.
Dual rule: coming soon
In making, Lido Dao contributors are proud to present a framework for the upcoming release of the dual regime, characteristics, parameters, signs and rollouts characteristic.https://t.co/IU7J1COLCR
– Lido (@Lidofinance) May 9, 2025
The proposed system is designed as a mechanism to increase accountability and decentralization, especially when the lido dominates the stacking landscape of the atherium. Above 25% of all Ath Stec has been done on the network running through its infrastructure.
how it works
The dual governance system connects a special timelock contract between the decisions of Lido Dao and their execution, which gives stith holders a way to interfere when opposed to a proposal.
“Dynamic” time lock is necessary because it is how-chain governance works technically behind the curtain.
In the current system, decisions are not immediately effective, as there is a fixed period before the execution is executed. If they do not agree with some changes, it gives users time to react.
However, Ethereum staking is different because no one can quickly withdraw untesthes or eth with the current timetic. It takes time, liquidity is complex, and often has a queue that may take several days to clean.
The new proposal wants to deal with this.
The proposed dynamic timelock assumes that, as adequate users, who are not satisfied with a proposed change, deposit their steth (or NFTS’s wrapped steth and return) in a specified escrow contract to withdraw, the period of the timollock starts increasing – it is called crossing “first seal” (total 1% ath staded set).
If the dissatisfaction continues and crosses the deposited “second seal” range (10%of Lido’s Etho’s Etho), then a “anger quit” is triggered: DAO’s decision is completely blocked until all the opposing stackers got a chance to withdraw their ETH.
This creates a type of safety valve – allows stackers to indicate objections and exit – while still giving DAO time to respond or cancellation of controversial action.
The plan comes when the Etharium has increased more than 30% compared to the previous week, riding a speed with its pectra upgrade, which introduced the execution-layer improvements to improve scalability and efficiency.
The rally has renewed attention to atherium-root applications such as lido, which is important in capital flow and verification participation in the chain-and directly affects the ETH market structure.
The LIP-28 proposal is still in the stage of its discussion, a formal on-chain vote is expected in the coming weeks.
If approved, changes can move how the governance is distributed in the stacking ecosystem of the atherium, there is an example for other DEFI protocols, which demands users to include, not only token hearing, in decision making. Other contestants of Lido include rocket pools and fruks ether.
LDO prices have increased by 6.5% in the last 24 hours, while Coindesk 20 index, a broad market gauge, climbed 2.5%.
Read more: Etreum activates the ‘Pectra’ upgrade, the maximum share increases to 2,048 eth
