Proposal: Research and Framework Development for LDO Tokenholder Value and Rights Maximization
Overview:
I propose a comprehensive project aimed at addressing LDO tokenholder value and rights within Lido DAO by developing a research-backed framework on value maximization mechanisms and governance alignment. The goal is to create actionable proposals that drive sustainable tokenholder value, ensuring governance decisions prioritize long-term tokenholder interests and build mechanisms for value accrual.
With extensive experience in crypto governance, research, and finance, I am uniquely positioned to deliver critical insights in this area. Since 2016, I have been deeply involved in the crypto ecosystem, including leading crypto research for a large fund from 2016-2020 and conducting governance work at a tier 1 VC as part of their delegation program. My work as an investment consultant for a multi-million crypto FoF vehicle further solidified my expertise in governance structures and tokenholder engagement. I also worked as an investment partner at a major VC firm for a number of years where I was focused on maximizing value for tokenholders, with a track record of creating impactful governance frameworks that align investor interests with protocol growth.
Given the growing importance of tokenholder value and its underrepresentation in governance discussions within Lido DAO, this initiative will serve as a foundational piece for aligning governance with tokenholder rights and long-term success.
Rationale:
Current Gaps and Importance of Tokenholder Value:
A review of Lido’s governance forum shows a notable gap in discussions around tokenholder value. Topics such as node operators, staking mechanisms, and multichain expansions dominate, while posts directly addressing LDO tokenholder benefits receive far less attention and engagement. This is a critical oversight in the long-term sustainability of the protocol.
Based on forum activity:
- Total forum topics: ~1,500
- Engagement on key topics:
- Node Operators: ~600-20,000 views
- Governance Proposals: ~500-16,000 views
- Tokenholder value discussions: <5% of total topics, averaging less than 1,500 views
Posts focused on enhancing tokenholder value make up only ~2% of overall discussions, despite the crucial role that tokenholders play in ensuring the protocol’s long-term growth and alignment. In comparison, discussions on technical improvements receive far more traction (up to 20,000 views), yet tokenholder engagement directly impacts sustainability.
Tokenholders are a key stakeholder group whose needs should be prioritized within the governance framework. This project will focus on filling that gap by developing a research-driven framework to enhance LDO tokenholder rights and value.
Objectives:
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Comprehensive Analysis of DAOs: Research best practices from governance models of major DAOs, focusing on how they maximize tokenholder value through various mechanisms like buybacks, staking incentives, or revenue sharing.
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Proposed Tokenholder Mechanisms: Develop actionable mechanisms for Lido, including, but not limited to: staking enhancements, token burn strategies, or aligning revenue shares with tokenholders to ensure that LDO holders benefit from protocol success.
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Tokenholder Rights Framework: Establish a governance framework that strengthens LDO tokenholder rights, introducing protections, voting power structures, and influence on key decisions.
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Implementation Plan for Governance Alignment: Provide recommendations on how Lido can adjust its governance model to prioritize it take into consideration tokenholder value and align key decisions with long-term value maximization.
Deliverables:
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Research Report: A detailed review of tokenholder rights and governance models across leading DAOs, with a focus on value maximization mechanisms.
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Tokenholder Rights Framework: A governance proposal designed to ensure LDO tokenholders have rights that are well-defined and safeguarded, aligning the protocol’s long-term strategy with tokenholder interests.
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Tokenholder Value Maximization Mechanisms: Concrete proposals, including potential buyback programs, staking incentives, and revenue-sharing models tailored for Lido’s ecosystem.
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Governance Strategy: An implementation plan for integrating tokenholder rights and value strategies into Lido’s existing governance, ensuring that future decisions reflect the long-term interests of LDO holders.
Timeline and Budget:
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Duration: 12 weeks (3 months)
- Phase 1 (4 weeks): Research and analysis of DAOs, focusing on tokenholder value strategies.
- Phase 2 (4 weeks): Development of the tokenholder rights framework and value mechanisms.
- Phase 3 (4 weeks): Finalization of proposals and community engagement for feedback.
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Total Budget Request: $75,000
- Research and Analysis: $30,000
- Framework Development: $25,000
- Community Engagement & Proposal Writing: $15,000
- Miscellaneous (tools, software, reporting): $5,000
This budget reflects the scope and depth of the work over a 3-month period, ensuring sufficient resources to deliver meaningful, actionable insights that can drive LDO tokenholder value and align governance with long-term success.
Conclusion:
Addressing LDO tokenholder value is critical to Lido’s sustained growth and governance maturity. This proposal aims to bring much-needed focus to the issue by delivering a framework and strategy that prioritizes tokenholder rights and value creation. Through research, data-driven analysis, and actionable proposals, this initiative will fill a vital gap in governance discussions, ensuring that LDO tokenholders benefit from the protocol’s success.
With my deep experience in crypto governance and finance, I am well-equipped to lead this project and ensure that it delivers impactful results for Lido DAO.