LEGO: A proposal to continue LEGO for Q1 2022

The second quarter of LEGO has come to an end and it’s time to vote on the continuation of the program.

The following is a brief summary of LEGO achievements over the previous quarter, as well as our ideas for developing the grants organization further in the quarter to come.

What is LEGO?

LEGO - the Lido Ecosystem Grants Initiative - is a framework by the Lido DAO to fund initiatives which help benefit and grow the Lido ecosystem. It is designed as a straightforward process through which external contributors can seamlessly gather the funding and resources required to act on their concepts.

By rewarding talent early with developer incentives, bounties, and infrastructure support, LEGO acts as a catalyst for growth and helps to maintain Lido as a leading and most useful liquid staking protocol in the whole space.

You can learn more about LEGO and apply for funding by visiting lego.lido.fi.

Overview Quarter 2

The second quarter of LEGO saw a number of exciting developments including:

  • The funding of Lido for Polkadot + Kusama by MixBytes().
  • The launch of a committee system through which the number of people who manage personal allocations (10,000 LDO) was expanded to include 10 industry participants.
  • The funding of a Lido Rabbithole campaign to drive stETH TVL and awareness. It is an extension of the following proposal.
  • Committing $100k in LDO token to each Obol and Blox Staking for the research of SSVs.
  • Funding the Argent L2 giveaway to drive Ethereum staking on L2.
  • We saw the launch of Tempus Finance, a LEGO-funded initiative to bring fixed-rate staking to stETH.

Throughout the last period, 41,097 LDO were allocated to LEGO initiatives. This is 17.42% of the 240,000 LDO allocated to LEGO per quarter (up from 11.68% in Q1).

Moving Forwards

By continuing with LEGO through Q1 2022, we aim to continue the growth of LEGO and fund developments which benefit Lido, the liquid staking industry and the greater ecosystem surrounding this.

For the coming 3 months, we propose the following changes to how LEGO is structured to enhance intensity and efficiency of the program:

  • Transfer of management of LEGO budgets to EasyTrack, setting a yearly budget as opposed to quarterly budget to improve efficiency of LEGO allocations.
  • Top up LEGO multisig to 240,000 LDO by sending 130,039.88 LDO from treasury.
  • Keep the current LEGO council as an entity that gets to decide on boulders and helps prepare mountain-sized grants.
  • The change of sums for grants to be 333 for sandgrain, 3,333 & 33,333 rai. The justification for this is that we currently have lower thresholds, and it makes operations harder. We want to utilise the grant program more, and this change would help the committee with reaching this goal.

The LEGO program is growing and has helped expand the utility of Lido across the space. Amongst other things we look forward to seeing the launch of liquid staking on Polygon, Polkadot + Kusama and other things which bring direct value to Lido.

For more information on proposals shared with LEGO, visit research.lido.fi.

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LEGO Budget + Personal Allocations

The LEGO will have a quarterly aggregate budget of up to 240000 LDO, divided into individual budgets of 15000 LDO for each LEGO council member, and 150000 LDO of shared budget for the full LEGO committee voting as a body. This will be sent to LEGO Council members today (January 18th, 2022). The current LEGO LDO treasury stands at 84,844.12, meaning a top up of 65,155.88 LDO is needed for the treasury.

Individual council allocations for the quarter are:

Member Wallet Top Up
Vasiliy Shapovalov 0x4A7489a3e94eFc8f4C4ee266ED297d3031f123A7 14,002
Kasper Rasmussen 0x639e084095020E1E85a857eb12b2219292a5B979 15,000
Victor Suzdalev 0x6f5c9B92DC47C89155930E708fBc305b55A5519A 5,170
Flo 0xb3F9998BD84cE884CaFF8f0D803c0EDbb6fEC37C 11,989
Tim Beiko timbeiko.eth 0
Sam Kozin 0x2CAE3a4D4c513026Ecc6af94A4BA89Df31c8cEA3 0
Total 46,161

LEGO Insider allocations for the quarter are:

Member Wallet Top Up
Klim ychad.eth 0
FrontAlpha 0x22aAbD935AEE16C653F9aF38C470384e15E91D69 885
Felix Lutsch 0x32b63d9d6032160c8D4A9216e8d6C9B4aEeb65E7 10000
CC 0x10B05DD4cf5dECF597bBd831A3C4BC2f9Bf51Fb0 10000
Eugene Pshenichniy 0xdd19274b614b5ecAcf493Bc43C380ef6B8dfB56c 0
Georgios Konstantopoulos 0x4BAa1fcAe9Ba8F9e1247b5CFD71e2463e85b2284 0
Isidoros Passadis 0x783EA934d543CD1ccfd920639A7539a0BD3895e2 944
JK 0xcC18535935dAfa418A41C761C74586feF1952575 0
Will Harborne 0x478615f37fccb0df69c191a8674233f6899d092e 0
Edi 0x1f5504d362311D17C5e00dD2396f4384B898eA28 0
Jacob 0x0a2242634eAb908Ef20c62Ed6c5cC200EF7C5A62 1150
Total 22,979

All LEGO council members are equal in power but have different specialties (e.g. community focused, validator focused, etc). At the end of three months committee makes a report on the grants program and a retrospective on how to improve it.

All LEGO transactions for the past two quarters can be tracked here.

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can we allocate some LEGO tokens to a token economics professional to optimize LDO token economics?

the potential sell pressure this year is massive. there must be a reason to hold besides governance. governance is controlled by a small group (which is not a bad thing when starting a DAO). there has to be another reason to not dump beyond governance.