# Proposal: Enable $LDO Staking with Protocol Revenue Sharing

**URL:** <https://research.lido.fi/t/proposal-enable-ldo-staking-with-protocol-revenue-sharing/10195>\
**Category:** Proposals\
**Created:** [June 12, 2025, 10:09am UTC](https://research.lido.fi/t/proposal-enable-ldo-staking-with-protocol-revenue-sharing/10195 "2025-06-12T10:09:55Z")\
**Posts on this page:** 1\
**Showing post:** 1

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**Author:** ![Junco\_Li](https://dub1.discourse-cdn.com/flex013/user_avatar/research.lido.fi/junco_li/32/6015_2.png) [@Junco\_Li](https://research.lido.fi/u/Junco_Li)\
**Post date:** [June 12, 2025, 10:09am UTC](https://research.lido.fi/t/proposal-enable-ldo-staking-with-protocol-revenue-sharing/10195/1 "2025-06-12T10:09:55Z")

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# 📢 [Proposal] Enable $LDO Staking with Protocol Revenue Sharing

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## 🗣 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.

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## 📝 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.

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### 💡 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)

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### 🎯 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

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## 📊 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

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## 📈 Reference Protocols

| Protocol | Revenue Sharing | Governance Boost | Notes |
| --- | --- | --- | --- |
| Aave | ✅ Yes (via veAAVE) | ✅ Yes | Treasury income shared with stakers |
| Curve | ✅ Yes (via veCRV) | ✅ Yes | veCRV gets 50% of protocol fees |
| Lido | ❌ Not yet | ✅ Yes | Proposal in discussion |

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## 🗳 Next Steps

1. Gather community feedback and suggestions
2. Launch a Snapshot signaling vote
3. If approved, proceed with formal DAO implementation process

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### 💬 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)

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**Tags** : `ldo`, `staking`, `revenue-sharing`, `tokenomics`

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_[View the full topic](https://research.lido.fi/t/proposal-enable-ldo-staking-with-protocol-revenue-sharing/10195)._