Encourage stETH holders to join DAO governance

Lido mainly provides staking services to users. In Ethererum2.0 staking case, lido users are who hold stETH or wstETH while LDO holders only have voting rights in lido community (though fewer LDO holders voted).
From data lido stats ,LDO holders and stETH holders, we could conclude

  • The number of stETH holders is 22358. In this case, we only count addresses which hold no less than 0.01 stETH.

  • The number of LDO holders is 10066. In this case, we only count addresses which hold mo less than 1 LDO.

  • Only about 2% of holders holding stETH own LDO. Moreover, only about 0.8% over 10 stETH own LDO while 0.2% holding over 100 stETH own LDO. The numbers show most stETH holders (lido revenue providers) just want to use the service while they would not join the dao governance. If the main stakeholders or beneficiary propose or vote nothing or keep silent, how to ensure the project to keep competitive.

I propose that if users holding certain amount of LDO use our staking service(i.e. holding stETH), they could get discounted commission rate (6% - 10%). The main idea is that the more LDO the stETH owners hold, the lower commission rate they can get.
Here, I am showing one example from the attached, we assume that users holding 25 LDO could get 6% commission rate instead of 10%. If the user holds 10 stETH for one year, the can get more rewards worthing 0.02 stETH, which is equal to 25 LDO based on the current ETH/LDO ratio.

  • Pros
  1. It encourage stETH holders to own some LDO and join community governance if possible.

  2. It increases LDO utility.

  • Cons
  1. Lido dao revenue will decrease. I still cannot find how much the treasury exactly has now. Hope someone could teach me to find it out.

  2. Technically, more work should be done. For example, how to support Luna and Sol stakers.

Hopefully get some replies while there are more details to be discussed.

  • The LDO threshold of each discounted commission level.

  • Possible impact on the decrease of dao renevue.

PS: the raw data comes from etherscan including LDO and stETH addresses and balances.

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Hi, I am willing join DAO governance. Tell me how to join.

Rocket Pool rETH is currently available on arbitrum and optimismPBC. The rETH token has also been bridged with Zksync. Looking forward to steth on L2…

still cannot find how much the treasury exactly has now.

the quick method is to check

currently has a bit over 2k stETH, with 11 more coming in daily.

I don’t think implementing this proposal will result in positive changes for Lido. It would give LDO more utility in terms of discount on stETH fee; but it makes LDO less powerful bc it reduces the revenue stream LDO has governance rights upon. My personal (intuitive, not data-backed) feeling is that the latter is more important than the former.

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There are also considerations around some groups being able to hold stETH directly such as custody requirements etc.

I generally like the idea of finding more utility for LDO but agree with @vsh that this could reduce utility of future cash flows for the DAO.