Community Staking Module

[zuzu_eeka]

Hello CSM community,
I’d like to share a proposal for your consideration.

@zuzu_eeka

The Community Staking Module (CSM) includes a mechanism that allows for the burning of bonded funds in cases of operator misbehavior or non-performance. However, there may be edge cases where an initial assessment triggers a penalty, but a more thorough post-incident review reveals that the Node Operator acted correctly and in accordance with Lido protocol guidelines.

To account for such situations, it is proposed that the CSM Committee be granted the discretion to compensate affected operators using a dedicated budget if it is determined that the penalty application was unjustified. The compensation fund is proposed to be initially supplied with 10 stETH from the Gas Supply Committee specifically allocated to cover slashed Node Operators’ bonds under CSM. Should this budget be depleted, any additional funding would be requested from the Lido DAO.

This action will be incorporated to the next CSM-related off-chain vote on Snapshot. And in case of DAO support the Gas Supply Committee will transfer 10 stETH to the CSM Committee.