October 1, 2024
Hello everyone! We’re back with the latest updates for you. Let’s dive in.
🪿A new GOOSE cycle has begun, with the aim of setting one- and three-year goals for the DAO. Key dates:
- Notice Period: Sept 24–Oct 8
- Proposal submission Period: Oct 8–Nov 9
- Discussion Period: Begins Nov 9, followed by voting
The Delegate Oversight Committee has decided to use the start of the upcoming vote period (Thursday, October 3rd, 4PM UTC) as the cutoff point for the list of incentivized delegates. You can Delegate your LDO until then.
The latest Node Operator Community Call took place last week, check it out.
Snapshot proposal coming your way this week, and on-chain proposals next week. 
Proposals
Upcoming Snapshots (Oct. 3)
Proposals to be posted this coming Thursday for a seven day period, following the regular monthly cadence (see calendar here).
Lido Community Staking Module Mainnet Release
Lido Community Staking contributors are requesting approval from Lido DAO members for the mainnet release of the Community Staking Module (CSM) on Ethereum. The CSM is a permissionless staking module featuring entry with an ETH bond, non-linear bond scaling for node operators, and a first-in, first-out stake allocation queue. It has demonstrated strong performance on the Holesky testnet. Approval would encompass the use of the current CSM implementation, acceptance of deployment parameters (excluding the early adoption list to be proposed later), and delegation of specific management responsibilities to the CSM committee’s multi-signature wallet.
Upcoming On-chain (Oct. 8)
The proposal recommends creating a rebasable stETH token on Ethereum Layer 2 networks by wrapping wstETH, effectively producing a canonical version of stETH (‘wrapped twice’). This approach streamlines transferring stETH across rollups using existing wstETH infrastructure and liquidity on L2 networks. It explores upgrading the wstETH bridge on Optimism as a practical example. Implementing rebasable stETH on L2 unlocks new use cases such as accurate staking and withdrawal accounting, token gas payments, and cross-domain deposits, enhancing user experience as activity shifts from L1 to L2.
See the upgrade announcement and action plan here.
Organize the Lido Alliance Program as a Lido-DAO-Adjacent BORG (Easy Track Factory)
This proposal derives from the recently passed Snapshot to create a Lido Alliance BORG Foundation to manage the Alliance workgroup and involves adding an Easy Track factory to the registry of factories.
In discussion
Onboard Bolt to the Lido Alliance
Bolt is proposing to join the Lido Alliance to enhance Ethereum block proposals by enabling credible commitments about block contents, starting with the inclusion preconfirmations. The goal is to improve Ethereum’s user experience and censorship resistance while aligning with Lido DAO’s values. Bolt seeks endorsement, integration support, and collaboration from Lido, including participation from Lido Node Operators in its testnet.
Adjusting Delegate Incentivization
@Tane proposes to enhance the existing delegate program by implementing a 30-point scoring system with criteria based on voting participation, forum engagement, and successful proposal authorship. They argue that the original objectives, which mainly focused on increasing voting participation, discussion quality, and protocol safety through community engagement, were not met by the current program. The proposal suggests removing the objective related to engaging new token-holders via delegation as it requires different approaches. Inspired by other DAOs like Compound and Uniswap, the proposed program would focus on rewarding delegates for their active contributions, aiming to create a more effective governance process.
This post discusses a funding proposal for the off-chain infrastructure component of the Deposit Security Module (DSM), referred to as Council Daemons. With the upcoming Staking Router v2 update, Council Daemons will manage additional transactions related to keys unvetting, ensuring deposit queue security. The proposal also includes a migration from RabbitMQ to a decentralized data bus using smart contracts on EVM-compatible chains, enhancing fault tolerance but increasing transaction fee costs. Estimated costs include up to 1 ETH per month for unvetting key transactions and an annual $10,000 for the decentralized data bus transition.
Optimizing Lido On-chain Voting Timelines for Inclusive Governance
@Tane suggests extending Lido’s on-chain voting period from 72 to 192 hours to enhance governance participation. The new timeline includes a 120-hour main phase (Tuesday–Saturday) and a 72-hour objection phase (Sunday–Wednesday), aiming to reduce missed votes and improve quorum attainment, aligning with other DAOs’ practices.
Increase the Proposal Threshold for Snapshot
This proposal suggests increasing the Snapshot proposal threshold for Lido DAO from 1,000 LDO to a range of 5,000 to 15,000 LDO. This change aims to mitigate spam and low-quality submissions, promoting more thoughtful and impactful proposals. Currently, Lido’s low threshold makes it vulnerable compared to other DAOs like ENS, Uniswap, Aave, and 1inch, which have significantly higher thresholds. The proposal also considers alternative measures like enhanced admin rights and whitelisted authors, though these may conflict with decentralization principles.
LEGO Proposal: Economic Viability and Securing of Preconfirmations
This post outlines a proposal by Conor McMenamin on behalf of Nethermind to secure funding for a project aimed at analyzing the economic viability and security of preconfirmations. The project, funded by a 100,000 USDC LEGO grant, will be carried out over three months. It will investigate whether preconfirmation protocols are economically viable for transaction proposers and how they can be secured to provide reliable transaction guarantees. The proposal consists of two main deliverables: a thorough analysis of the economic aspects and a framework for securing preconfirmations.
Contributor & Workstream Updates
Forum Post: Staking Router Module Proposal: Simple DVT [node upgrade]
Massimo from the SSV core team announces the upcoming “Alan Fork” node upgrade (“a big one”), which introduces committee-based consensus and efficient network messaging. The testnet launch was on September 24, 2024, with a tentative mainnet rollout around October 20th, pending testnet results.
Forum post: RockLogic Monthly Notes
In the latest RockLogic Monthly Notes, the team shared a comprehensive update on their ongoing projects and infrastructure advancements. Highlights include the successful setup and support of various SSV and OBOL mainnet clusters, proactive measures in addressing Nimbus block production issues, and regular maintenance for Validator Ejectors. Additionally, they reported significant achievements in node upgrades and infrastructure tuning across multiple testnets, alongside a commitment to continuous monitoring and support through their Discord server. Efforts to maintain security and performance through regular audits and updates to Fullnodes and Validator Clients were also emphasized.
Forum Post: Becoming an Ethereum Node Operator Part 1: The Current Landscape of Liquid Staking Protocols
This post explores the complexities and entry barriers for potential node operators within Ethereum’s Liquid Staking Protocols (LSPs). @firstset discusses how solo staking represents a minor portion of the total Ethereum staked due to high capital and technical requirements. Instead, most staked ETH is managed by a few major entities, which poses a centralization risk counter to Ethereum’s decentralization goals. LSPs are responding by enabling more permissionless models for node operators to diversify control. The post provides a comprehensive comparison of leading LSPs, detailing their requirements, rewards, and operational costs, and concludes with an invitation to follow the second part of the series, which will evaluate the pros and cons of these protocols and offer strategies for small- and medium-scale node operators.
Forum Post: PERCH Proposal: Request for testing of Commit-Boost and the PBS Module
@DrewVanderWerff’s forum post outlines a proposal for the Commit-Boost and PBS Module, requesting testing from the Lido Validator Community. Commit-Boost has been in development and is scheduled for an audit by the end of October. The proposal seeks participation from at least 10 node operators with a total of 50,000 validators in Holesky for feedback and to ensure the software’s robustness. The testing focuses initially on the PBS module.