[Proposal] Enable $LDO Staking with Protocol Revenue Sharing
Intro
Hi everyone,
Recently, we’ve seen more and more DeFi protocols (like Aave and Curve) exploring ways to distribute protocol revenue to their token holders.
As a long-time supporter of $LDO, I’d like to raise a simple question:
Should Lido consider introducing a similar model where staked $LDO holders receive a share of protocol revenue?
Below is a rough outline of the idea. I’d love to hear your thoughts, feedback, or suggestions.
Proposal: Enable $LDO Staking with Revenue Sharing
Summary
This proposal suggests enabling $LDO staking with protocol revenue sharing to strengthen token utility, align incentives, and reward long-term holders.
Key Points
- Allow $LDO holders to stake tokens and receive a portion of Lido protocol revenue (e.g. 20–30%)
- Rewards could be distributed in ETH, stETH, or via $LDO buybacks
- Add a 6-month vesting period for rewards to reduce short-term speculation
- Stakers retain governance rights (potentially via veLDO or time-locked models)
Why It Matters
- Creates real yield for $LDO holders
- Enhances token utility and governance participation
- Aligns Lido with leading DeFi protocols like Aave and Curve
Simple Projection (Assuming 25% Revenue Sharing)
- Estimated annual protocol revenue (based on 2024 Q1): ~$112M
- 25% allocated to LDO stakers = $28M/year
- If 30% of circulating LDO is staked (~300M tokens):
→ Approx. $0.093 per LDO/year = ~9.3% APY at $1.00/LDO price - Higher APY possible with more protocol growth or lower staking participation
Reference Protocols
Protocol | Revenue Sharing | Governance Boost | Notes |
---|---|---|---|
Aave | ![]() |
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Treasury income shared with stakers |
Curve | ![]() |
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veCRV gets 50% of protocol fees |
Lido | ![]() |
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Proposal in discussion |
Next Steps
- Gather community feedback and suggestions
- Launch a Snapshot signaling vote
- If approved, proceed with formal DAO implementation process
Feedback Welcome
Would love to hear what the community thinks — especially around:
- Revenue share %
- Reward token format (ETH, stETH, LDO buyback?)
- Staking model (simple stake or veLDO-style lockups)
Tags: ldo
, staking
, revenue-sharing
, tokenomics