August 26, 2024
A few items to highlight this week:
First, on the delegate incentivization program: The proposal to establish a public delegate platform and incentivization program for Lido was passed with full support on August 8th, and interested delegates have posted their applications (i.e. profiles) in the delegate platform thread. Check them out. The Delegate Rally begins today and will run until September 18th.
See our recent Spotlight for an in-depth look at this new program.
Second, Vote #178 has been executed (see below) and on-chain delegation is now live. The UI for easy delegation is expected to be released today, but if you can’t wait, here’s a guide on how to delegate via Etherscan: Etherscan Voting Guide.
Third, on the governance UI: The DAO Operations Workstream has proposed discontinuing the Aragon UI for governance and node management, with support ending by year-end. Users are encouraged to transition to new platforms, vote.lido.fi and operators.lido.fi. If no significant objections arise, the Aragon UI will be shut down. Feedback on the transition and additional feature needs is welcomed.
And lastly, @SEEDOrg has suggested regular governance calls. What say you?
Proposals
Upcoming Snapshots
Proposals to be posted this coming Thursday (August 29th) for a seven day period, following the regular monthly cadence (see calendar here).
Organize the Lido Alliance Program as a Lido-DAO-Adjacent BORG
The proposal from @lex-node outlines the creation of a Lido Alliance BORG, a legal entity incorporated in the Cayman Islands to manage the Lido Alliance Program. The BORG structure is designed to provide legal governance, hold assets, and ensure continuity for the Lido DAO while incorporating autonomous technologies. It requests an initial budget and outlines the roles, governance, and operational procedures of the BORG, emphasizing transparency and checks-and-balances with Lido DAO.
Can Galaxy Continue as Node Operator after Acquiring CryptoManufaktur?
On July 18, 2024 CryptoManufaktur was acquired by Galaxy. There has been a discussion of the implications of this acquisition, particularly regarding potential changes to validator operations, organizational structure, and geographic distribution. The stated focus is to ensure continuity and transparency. The Lido Node Operator Sub Governance Group (LNOSG) will be proposing allowing Galaxy to continue as a Node Operator.
Completed
Onchain
Vote #178: This was a slightly adapted version of #177 (which did not meet quorum). Voting on this omnibus proposal was executed on August 24th. It contains the following three proposals:
- Replace Rated Labs with MatrixedLink in Lido on Ethereum Oracle set (recently approved via snapshot).
- Rename Node Operator with IDs 23 (CryptoManufaktur) and 36 (Numic) and update the reward addresses (see forum request).
- On-Chain Delegation (approved on Snapshot last March). This proposal enhances Lido DAO governance by updating the Aragon Voting contract and the TRP Voting Adapter contract.
Note that Vote #178 was helpfully annotated by the DAO Operations Workstream to make verification of the on-chain steps easy. 
Snapshot
Establish a Public Delegate Platform and Delegate Incentivization Program
This proposal passed on August 8th with 100% voting in favor.
This proposal passed on August 8th with 100% support.
Decision on Rated Labs’s position in the Oracle Set: rotate or remove and change the quorum
One hundred percent voted in favor of rotating MatrixedLink into the oracle set.
Should the Lido DAO recognize the wstETH Bridge Endpoints on BNB as canonical?
Proposal passed on August 9th with 100% support for recognition.
Should the Lido DAO recognize the wstETH Bridge Endpoints on Mode as canonical?
Proposal passed on August 9th with 100% support for recognition.
In discussion
ESPBL: Collective Bargaining for the Lido Alliance
The proposal suggests forming the Ethereum Service Providers Business League (ESPBL) under IRS Code 501(c)(6) to collectively bargain for better pricing for Lido Node Operators. This initiative aims to reduce operational costs, enhance network resilience, and standardize security, potentially saving the Ethereum ecosystem up to $907,200 annually by the fifth year.
Inclusion of SecureRPC.com MEV Relay as a Mandatory Relay in Lido’s MEV Relay List
This proposal recommends making the SecureRPC.com 2 MEV Relay, operated by Manifold Finance, a mandatory relay in Lido’s MEV infrastructure. The relay, currently optional, offers enhanced security with a non-filtering, non-optimistic design and includes a Captive Insurance pool for service outages. The proposal aligns with LIP-17 guidelines, aiming to improve Lido’s MEV operations by integrating this reliable relay.
Contributor & Workstream Updates
Forum post: Community Staking Module
The Community Staking Module LIP (26) has been published on GitHub.
Forum post: Community Grants: CSM Resources
The Community Lifeguards Initiative is offering up to $2,000 in retroactive funding for community-driven resources that raise awareness of the Community Staking Module (CSM) and assist home stakers. Eligible resources include guides, tutorials, and explainers related to CSM setup and usage. Applications are accepted until September 30, 2024, based on quality, usability, and uniqueness.
Forum post: Lido Node Operator MEV Boost min-bid guidance
@Tane posts to indicate the need to further study the impact of the minimum bid on decentralization and base-fee volatility. Key concerns include the unclear relationship between min-bid and censorship resistance, potential base-fee volatility from vanilla blocks, and the trade-offs between decentralization and economic efficiency.
Forum post: LIP-23: Negative rebase sanity check with second opinion
@VictorP posts to say that the LIP-23 proposal has been confirmed feasible and correct by audits from ChainSecurity and MixBytes. The solution will be deployed to Mainnet as part of the Staking Router v2 initiative to reduce operational overhead. Testnet deployments on Sepolia and Holešky are planned for further testing this month.
Forum Post: Lido Community Lifeguards Initiative
@Stakesaurus recommends onboarding StakeCat, a group of seven Ethereum solo stakers, as the European Community Lifeguard within the Lido Community Lifeguards Initiative, citing their expertise and contributions to the solo staking community.
Forum post: Staking Router Module Proposal: Simple DVT
The update reports strong performance of the Lido x SSV Cohort 1 clusters and proposes raising their validator key limits to 40 in phases. It also suggests increasing Cohort 2’s limits to 5 validators after onboarding.
See the related blog post from Lido on recent developments with the Decentralized Validator Vault (developed by Mellow): the Vault aims to increase Distributed Validators within Lido’s Simple DVT Module, enhancing decentralization, security, and network resilience. The Vault allows stakers to earn rewards from stETH and DVT incentives, with a target of 11,868 validators.