Community Staking Module

Proposals
118

Since we live in the world where AI became an essential part of our lives, I have asked ChatGPT to prepare a short summary of the recently published LIP-29. Community Staking Module v2 given the upcoming Snapshot vote about this LIP.

DISCLAIMER: This summary turned out to be not 100% accurate, but this is what you get with AI these days :woman_shrugging:

:puzzle_piece: LIP-29: Community Staking Module v2 (CSM v2)

LIP-29 proposes a major upgrade to Lido’s Community Staking Module aimed at enhancing decentralization, scalability, and flexibility. Key highlights include:

  • Support for Multiple Node Operator Types: Enables onboarding of permissionless, vetted, or professional operators with custom parameters such as bond curves and performance metrics.
  • Gated Operator Onboarding: Introduction of PermissionlessGate and VettedGate contracts for structured and secure operator entry.
  • Advanced Validator Management:
    • Strike-based penalties and automated ejection (CSStrikes.sol, CSEjector.sol)
    • Voluntary exits aligned with EIP-7002
  • Improved Reward System: Uses Merkle-based trees for distribution with variable operator fee shares and rebates to the Lido treasury.
  • Referral Program: Seasonal incentive mechanism to encourage operator referrals under governance control.
  • Enhanced Security Architecture: Modular smart contracts with emergency pause (GateSeal), upgradability via proxy patterns, and detailed governance role mapping.

Overall, CSM v2 introduces a more modular, permissioned-permissionless hybrid staking framework, designed to broaden operator inclusion while maintaining protocol integrity and decentralization.

This LIP is a critical step in Lido’s roadmap toward greater community participation and operational resilience.

Please let me know if you like this type of the summaries.

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