There must be a fierce battle between Lido and Eigenlayer
Paradigm is the defender, owning Flashbots and Lido, and holding monopoly positions in Mev and ETH Staking respectively. Flashbots encountered challenger Eden before switching to POS, and it also lost a large amount of market in a short period of time.
The attacker is Polychain. Will Eigenlayer’s Trojan horse scheme succeed, or will Lido be better at luring the enemy into a House of Flying Daggers?
The current market expectation for EigenLayer is 30-50B, while Lido is currently 2.2B.
The team’s continued behavior is not conducive to lido’s long-term development trend. The performance of the token is also a reflection of the quality of the project. Don’t learn eos
The Activate Lido Protocol Governance with Revenue Share Staking Snapshot was missing some of your votes
necessary to reach a quorum and failed, unfortunately.
The results are: Yes- add revenue share to $LDO: 2.1M LDO No - do not add revenue share: 2.7M LDO
I have been following lido for three consecutive years and found that the project team is too arrogant and does not consider token holders at all. I am very disappointed! ! !
Eigenlayer at least provides more benefits to token holders, and the annual staking rate currently exceeds 5%. There are also potential AVS project parties to airdrop eigen tokens in the future. What does lido offer token holders?
I believe the issue isn’t about arrogance or disregard for token holders. In the discussion above, you’ll find detailed arguments explaining why the team has focused primarily on protocol growth over the past three years.
I’d also like to point out this topic, where it appears that attention in 2024 will also be on exploring ways to create utility for LDO.
Thank you for sharing your thoughts, and I hope this provides some additional context.
I think it’s less about the act of turning on a fee switch and more about the general vibe-cession that’s associated with DeFi underperformance in general and in particular Lido stands out as one of the worst ones of it’s cohort, despite the success of stETH.
I think token holders have the right to ask for certain things and be angry, but really what they want (imo) are a few basic things:
An acknowledgement of the situation
A reflection on how/why this underperformance is happening
A solution to right the ship and/or re-alignment strategy
Here’s why I believe enabling the LDO fee switch right now is a no-brainer and why I’m urging us to act:
Why We Should Flip the Switch Now
Clear Regulatory Signals: We’re seeing some of the most favorable regulatory tailwinds for DeFi in years. With recent legal clarity and Lido’s decentralized governance, we have a green light to implement a revenue-sharing model. We’re in good company—protocols like Maker and Aave have already set this standard. If we delay, we miss a golden opportunity to align with these industry leaders while the window is open.
Ethereum DeFi Revival: DeFi on Ethereum is roaring back to life. Layer 2 adoption is taking off, and staking is hotter than ever. By turning on the fee switch now, we make LDO significantly more attractive to investors who are looking to capture this momentum. We can transform passive token holders into active participants who stake, boost liquidity, and strengthen the protocol.
Unlocking Real Value for LDO Holders: It’s time we address the elephant in the room—LDO needs real utility. By allowing LDO staking with revenue share, we’re giving token holders a tangible reason to hold and stake. This isn’t just about yield; it’s about aligning our community’s incentives, building a stronger base, and showing we’re listening to what our stakeholders have been asking for.
Strong Financial Backing: Our treasury has over $482 million in assets, with a comfortable 30-year runway. Redirecting a portion of revenue to stakers won’t put us at risk. On the contrary, it will drive growth and engagement, ultimately benefiting the protocol’s financial health in the long run.
Final Thoughts
Let’s be clear: flipping the fee switch isn’t just an incremental change—it’s a strategic leap forward. The market conditions are right, the regulatory landscape is favorable, and the community is ready for it. Activating this mechanism will transform LDO from a governance-only token into a yield-bearing asset, attract new capital, and reinforce Lido’s market dominance.
We have a unique window of opportunity here. Let’s seize it and make LDO a more compelling and valuable asset. I strongly urge us to move forward with this proposal and activate the fee switch now.
If a project wants to last, the project team’s tokens must be valuable. Only when the tokens have value can the foundation have more money and the project can go further. This is a directional loop! Therefore, the project should release bullish news to empower the token as soon as possible. Stop dreaming all day long! ! !
The issue is that it’s not a ‘no-brainer.’ I would encourage anyone to look at Uniswap’s extremely detailed discussion of the same topic and the issues they found with it. Also note this thread.
I am not opposed to a fee switch, in fact like most I see the attraction, but we should investigate why Uniswap remains in limbo on the topic. To my eyes it remains a little unclear. What I can tell from it is we would need someone to research its feasibility properly.
I believe the winds in DeFi are changing. Trump has won the elections potentially ushering a new era for crypto.
As an example, Coinbase launched yield product for USDC on non-custodial USDC held in wallet! If Coinbase feels confident about changing regulation, Lido should start considering a bold move and enable the fee switch.
As Hasu had shared in his GOOSE-2 submission “By tying LDO more directly to protocol revenue, we can attract committed, long-term holders who are invested in Lido’s growth and success.”
To @polar, Uniswap DAO has an alternative model for the token utility: Unichain. UNI will serve as a staking token.
EDIT: I spoke to soon and want to excuse myself.
In fact, Lido does not seem to have significant surplus to distribute.
You can see on this Dune dashboard that Lido has a $5.5M. surplus this month (that is why I initially pushed for rev share) but the dashboard mistakenly Operating expenses as revenue.
Currently, there seems there is no significant surplus to redistribute.
