NEC in the Evolving Governance Landscape
The establishment of the Network Expansion Committee (NEC) in November 2024 marked an important step in how Lido DAO manages network growth: combining faster execution with transparency, security, and community input.
As the cross-chain ecosystem continues to evolve with new opportunities emerging rapidly, it’s crucial for the operational processes to keep pace as well, which is why the next step was proposed: Empowering Lido Ecosystem Foundation to Lead Bridge-Related Partnerships (approved by Lido DAO via Snapshot voting). As part of this shift, the Lido Ecosystem Foundation will take on a larger role in bridge strategy and partnerships. In this updated structure:
- Lido Ecosystem Foundation handles partnership negotiations with bridge providers, keeping (w)stETH expansion safe and competitive.
- NEC provides technical, operational, and advisory support.
- The new Bridging Security Committee (BSC) under Lido Labs Foundation acts as a counterbalance and a safeguard on behalf of the DAO, ensuring that bridge-related agreements protect the long-term integrity of the protocol.
Following these changes:
- NEC membership composition is rotated to ensure better alignment with its objectives.
- With BSC safeguarding the process, the previously approved flow for canonical bridge recognition changes: a 5-day DAO objection period will no longer be provided upon publication of the decision by NEC.
This updated structure offers balance between speed and safety, ensuring that the DAO maintains control while enabling faster, more responsive actions in the evolving cross-chain landscape.