TL;DR
This proposal requests $60,000.00 from LEGO, as a part of the “DUCK FLAP grant pool” mentioned in the Strengthen DUCK LEGO proposal, to subsidize assurance assessments for four early-adopter Node Operators (NOs) under the ValOS framework (successor to DUCK). Each chosen NO will receive a flat-fee subsidy to undergo an enterprise-grade assessment with a leading technical auditor recognized in institutional IT assurance. ValOS extends SOC2/ISO27001-style controls into validator operations, enabling Node Operators to meet institutional due diligence requirements. Through ValOS in general, and specifically by providing this early-adoption incentive for Node Operators, Lido DAO reinforces its leadership in Ethereum liquid staking while setting the standard for enterprise-ready risk and governance frameworks for node operators, further supporting enterprise-grade excellence needed for institutional staking adoption.
Background
In the original DUCK proposal (see “Strengthen D.U.C.K.”), the LEGO committee approved a roadmap that included a proposed follow-up funding request to bootstrap the D.U.C.K. Funding Launch for Audit Participants (DUCK FLAP) grant pool. This pool is intended to support early adopters by subsidizing the cost of assurance reviews, thereby accelerating adoption and demonstrating real-world applicability. Rather than covering internal wages or overhead, the grant pool will offset external, unavoidable expenses such as the audit itself, compliance uplift consulting, and any additional tooling needed. This ensures operators retain skin in the game by funding their own internal work, while the fund lowers the steepest barriers to adoption.
Since then, DUCK has evolved into ValOS (Validator Operations Standard), a more formalized governance and assurance framework building on DUCK’s foundations. With ValOS now positioned for early real-world adoption, we are requesting the approval of funds for the grant pool as originally envisioned.
As more institutions and enterprises come onchain, assurance frameworks aligned with established standards (SOC2, ISO27001) become critical. ValOS extends these standards into the validator domain, ensuring that Node Operators can meet the full due diligence requirements of enterprise and institutional partners. By partially subsidizing these early assessments, Lido reinforces its position as the leader in liquid staking products, while extending into validator assurance and risk controls via ValOS, and creating enterprise-grade trust foundations needed for high-growth institutional staking adoption.
In addition to establishing a robust assurance framework, certification under ValOS is expected to carry commercial value for operators themselves, serving as demonstrable proof of enterprise-grade practices. This increases their attractiveness to counterparties.
Proposed Process
The subsidy allocation process will be coordinated by the ValOS governance committee in collaboration with contributors from the NOM workstream. Selected Node Operators will be communicated to the Lido community at the commencement of each respective assurance engagement (i.e. on a case by case basis), via a relevant forum post.
Each selected Node Operator will be paired with a highly respected technical auditor recognized in institutional and enterprise IT assurance. This ensures the subsidy is not just a cost offset, but a direct investment into enterprise-grade audits. The DUCK/ValOS team will coordinate this matching process and connect Node Operators with the auditor.
Assessments will extend beyond traditional validator metrics to incorporate SOC2- and ISO27001-style controls (security, governance, availability, process integrity).
Interested Node Operators can reach out to [email protected] or via the ValOS Telegram Community (https://t.me/valoscommunity).
Value to Lido DAO
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Institutional Excellence: Serves as further proof that many Node Operators using the Lido protocol operate at an institutional level, further solidifying the value proposition of Lido to institutional stakers, custodians, and enterprises.
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Enterprise Signaling: Shows that Lido DAO invests proactively in operational excellence, aligning with standards (SOC2, ISO27001) already used by institutional partners.
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Validator Strengthening: Improves Node Operator practices across security, governance, and operations, raising baseline resilience.
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Proof of ValOS: Validates the ValOS framework in live enterprise-grade settings, showing that validator assurance can meet enterprise and institutional standards, setting the stage for long-term adoption across the ecosystem.
Funding Request
We are requesting a total of $60,000.00 to cover direct subsidies for four (4) early-adopter Node Operators to undergo enterprise-grade ValOS assessments. These subsidies will be applied toward engaging respected technical auditors with institutional and enterprise expertise, ensuring the audits align with frameworks such as SOC2 and ISO27001.
If any portion of the funds remains unused after 12 months after the date of the funds transfer, the unused balance will be returned to the Lido DAO Treasury.
Payment Details
Payments (in DAI or equivalent stablecoin) to be made to this Ethereum address:
eth: 0x1b28728B06BEEd3a5363DA146B59dB372bbAd047