# Lido Validator Exits Policy (Draft for Discussion) **URL:** \ **Category:** Proposals\ **Created:** [February 13, 2023, 11:29am UTC](https://research.lido.fi/t/lido-validator-exits-policy-draft-for-discussion/3864 "2023-02-13T11:29:39Z")\ **Posts on this page:** 9\ **Page:** 1
**Author:** ![Izzy](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/izzy/32/320_2.png) [@Izzy](https://research.lido.fi/u/Izzy)\ **Post date:** [February 13, 2023, 11:29am UTC](https://research.lido.fi/t/lido-validator-exits-policy-draft-for-discussion/3864/1 "2023-02-13T11:29:39Z")
As a part of the implementation of withdrawls and unstaking for users of stETH, it seems that the Lido DAO will need to come up with a policy on what the expectations and responsibilities of Node Operators who participate in the protocol by operating validators are. Together with some other Lido contributors, we have put together a draft attempt at such a policy, to be used as a driver for discussion by the community. The full document can be found here: [Lido on Ethereum Validator Exits Policy - HackMD](https://hackmd.io/zHYFZr4eRGm3Ju9_vkcSgQ#The-need-for-validator-exits-in-a-staking-protocol) I suggest that we take the next two weeks to discuss and iterate on the above and attempt to have a vote-ready document within the first week of March. It would also make sense to have a deep-dive session to go over how the policy would interact with the proposed updates to the oracle design and the withdrawals flow, so we will try to put something together. Aiming for first week of March should also provide Lido contributors and Node Operators enough time to test the implementation of relevant process/mechanisms when withdrawals are enabled on the Goerli testnet. * * * #### Other topics / resources relevant to this discussion: > [@Withdrawals for Lido on Ethereum](https://research.lido.fi/t/withdrawals-for-lido-on-ethereum/3690/): > > The Shanghai/Capella upgrade for Ethereum, scheduled for March-April 2023, will introduce support for the unstaking of Ether. The ability to exit a validator and unstake associated Ether is required for the Lido protocol to build the withdrawals feature. Designing the withdrawal feature for the Lido liquid staking protocol is a complex task due to the difficulty of interfacing data between the Consensus and Execution Layers, as well as the async nature of the Consensus Layer validator exit and … > [@Withdrawals: Automating Lido Validator Exits](https://research.lido.fi/t/withdrawals-automating-lido-validator-exits/3272): > > Intro After withdrawals are live on Ethereum, special tooling setup will be required to effectively manage exits for 100+ thousands of Lido validators. We propose a semi-automatic solution which requires Node Operators to pre-sign exit messages and run a dedicated daemon which will broadcast the messages to the network when [Lido Oracles](https://github.com/lidofinance/lido-oracle) publish exit requests on chain in [LidoOracle](https://github.com/lidofinance/lido-dao/blob/master/contracts/0.4.24/oracle/LidoOracle.sol) events. Problem Statement Ethereum validator exits are going to be [voluntary](https://notes.ethereum.org/@djrtwo/Bkn3zpwxB?type=view#Voluntary-Exits): there is currently no way for Lido t… > [@Withdrawals. On validator exiting order](https://research.lido.fi/t/withdrawals-on-validator-exiting-order/3048): > > TL; DR This post describes the current background behind validator exiting order design. We, Lido dev team, want to provoke public discussion and gather feedback and stakeholders’ sentiment; especially looking forward to hearing from Node Operators representatives. The current dev team preference is Approach 1: eject first the validator from a Node Operator with the largest amount of active validators. Intro When withdrawals in Ethereum become feasible Lido stakers will be able to withdraw E… ---
**Author:** ![Izzy](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/izzy/32/320_2.png) [@Izzy](https://research.lido.fi/u/Izzy)\ **Post date:** [February 17, 2023, 11:03am UTC](https://research.lido.fi/t/lido-validator-exits-policy-draft-for-discussion/3864/2 "2023-02-17T11:03:41Z")
There will be an open community session to discuss the draft on Wed Feb 22, 5PM UTC. Since posting a public zoom link isn’t ideal, if anyone is interested in joining please respond here, or ping someone from the NOM contributors in the Lido discord and the link will be shared. ---
**Author:** ![Izzy](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/izzy/32/320_2.png) [@Izzy](https://research.lido.fi/u/Izzy)\ **Post date:** [February 22, 2023, 9:34am UTC](https://research.lido.fi/t/lido-validator-exits-policy-draft-for-discussion/3864/3 "2023-02-22T09:34:57Z")
Just a reminder that there’s an open deep dive session today at 5PM UTC to go over the proposed policy and go in-depth on the tooling modules that were presented yesterday by the tooling team during the community call (relevant segment is here: [Node Operator Community Call #4 - YouTube](https://youtu.be/hms1Cln1Z0E?t=1088)) If you wish to join please contact a lido contributor and the zoom link will be provided! EDIT: Recordings of the sessions available here: Session #1 [Lido validator exits & oracle deep-dive session 1.mp4 - Google Drive](https://drive.google.com/file/d/153KSfnWxH0x7V_xH961N7N38NICtcUPf/view?usp=share_link) Session #2 [Lido validator exits & oracle deep-dive session 2.mp4 - Google Drive](https://drive.google.com/file/d/1RgNZEpNpwur5wYlv5TAzKQ4Q9CpsYctl/view?usp=share_link) ---
**Author:** ![spireblockchain](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/spireblockchain/32/3066_2.png) [@spireblockchain](https://research.lido.fi/u/spireblockchain)\ **Post date:** [March 21, 2023, 9:58pm UTC](https://research.lido.fi/t/lido-validator-exits-policy-draft-for-discussion/3864/4 "2023-03-21T21:58:00Z")
Thanks for posting the session recordings. I wasn’t able to attend the original deep dive sessions so this is helpful. ---
**Author:** ![Izzy](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/izzy/32/320_2.png) [@Izzy](https://research.lido.fi/u/Izzy)\ **Post date:** [April 26, 2023, 11:34am UTC](https://research.lido.fi/t/lido-validator-exits-policy-draft-for-discussion/3864/5 "2023-04-26T11:34:00Z")
Some minor edits for flow and grammar have been [made to the proposed policy](https://hackmd.io/zHYFZr4eRGm3Ju9_vkcSgQ#The-need-for-validator-exits-in-a-staking-protocol) and two sections have been added. I propose that if by next week there’s no more discussion on the topic, we move to a snapshot vote. The newly added sections: #### B.3.V Out of Order Exits and NO Business Continuity ##### Out of Order Exits Out of Order exits refers to exits that are made by a Node Operator when a validator exit request has not been made for a (set of) validator(s) by the Lido protocol. In the case of processing such an exit, the Node Operator must notify the DAO via the Lido forums ([https://research.lido.fi](https://research.lido.fi/)) that such an exit has been processed, how many and which validators have been exited, and the reason for the exit. ##### Business Continuity and Other Considerations If at any time a Node Operator is unable to continue to participate in the Lido on Ethereum protocol (e.g. has become insolvent), it must notify the DAO via the Lido forums ([https://research.lido.fi](https://research.lido.fi/)) of the circumstances and signal its intent to exit all of the validators that it operates as a part of the protocol. If the DAO does not otherwise instruct the Node Operator via a ratified vote within 8 days, it must proceed with triggering the exit of all of the validators. ---
**Author:** ![Izzy](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/izzy/32/320_2.png) [@Izzy](https://research.lido.fi/u/Izzy)\ **Post date:** [May 1, 2023, 9:30am UTC](https://research.lido.fi/t/lido-validator-exits-policy-draft-for-discussion/3864/6 "2023-05-01T09:30:51Z")
### Validator Exits Policy - Final Draft Deep Dive There will be two open sessions to go over the current draft before it’s sent to snapshot if the community wants to join. The sessions will be over video conferencing, but the link will be shared privately to any interested DAO community member to avoid scammers/phishers joining. If you wish to join, just DM any NOM workstream member. - Session #1 - Tue May 2, 9:00 am UTC - Session #2 - Tue May 2, 5:00 pm UTC ---
**Author:** ![Izzy](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/izzy/32/320_2.png) [@Izzy](https://research.lido.fi/u/Izzy)\ **Post date:** [May 3, 2023, 8:55am UTC](https://research.lido.fi/t/lido-validator-exits-policy-draft-for-discussion/3864/7 "2023-05-03T08:55:03Z")
The Policy has had minor updates made in order to bring terminology related to the v2 oracles in line with the actual wording (“Ejector Oracle” → “Exit Bus Oracle”) and from a grammar and clarity perspective. The detailed changes can be seen in hackmd by clicking the “settings” menu of the note (dots on the top right) and navigating to “Versions and GitHub sync”. The draft for the proposal has also been [published to github](https://github.com/lidofinance/documents-and-policies/blob/main/Lido%20on%20Ethereum%20-%20Validator%20Exits%20Policy.md) to facilitate version comparison for future changes. Additionally, [a copy pas been pinned to IPFS](https://lido.mypinata.cloud/ipfs/QmUK16fKPYVreKaJeaseP9n4z7cm2Yi1GadWPLf474kFt4). ---
**Author:** ![MF\_DROO](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/mf_droo/32/2286_2.png) [@MF\_DROO](https://research.lido.fi/u/MF_DROO)\ **Post date:** [May 4, 2023, 6:39pm UTC](https://research.lido.fi/t/lido-validator-exits-policy-draft-for-discussion/3864/8 "2023-05-04T18:39:16Z")
The Lido Validator Exits Policy has been [published for snapshot voting](https://snapshot.org/#/lido-snapshot.eth/proposal/0xa4eb1220a15d46a1825d5a0f44de1b34644d4aa6bb95f910b86b29bb7654e330)! Please review and participate, and leave any comments below regarding the propsal as per usual! ---
**Author:** ![Alex\_L](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/alex_l/32/994_2.png) [@Alex\_L](https://research.lido.fi/u/Alex_L)\ **Post date:** [May 12, 2023, 6:32am UTC](https://research.lido.fi/t/lido-validator-exits-policy-draft-for-discussion/3864/9 "2023-05-12T06:32:05Z")
@Izzy @MF_DROO Lido on Ethereum Validator Exits Policy V1.0 is accepted by the DAO according to the [Snapshot vote results: 55.5M LDO For, 192 LDO Against](https://snapshot.org/#/lido-snapshot.eth/proposal/0xa4eb1220a15d46a1825d5a0f44de1b34644d4aa6bb95f910b86b29bb7654e330).