Proposal to address tax and regulatory considerations surrounding liquid staking

Considering there is almost no regulatory framework at this point for staking protocols, I don’t think there is much to be gained from simply summarizing the current state of play for institutions or builders even on very specific points. I think targeting regulators and tax authorities as the audience for these specific deliverables makes sense and seems to be what POSA has been focused on so far. And having a list of specific issues to address (such as those posted by @lex-node) is definitely key.

The working group could put more work into providing guidance to builders and others in the space on what the current situation is, which is something POSA also mentioned in the initial post. It would be great to have Lido represented in that working group to contribute to developing messaging and best practices for the industry, and to provide some reporting back to the Lido community directly.

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The proposal did not achieve the quorum threshold of 50M LDO in favor. This means we will require a re-vote.

Before reopening the conversation I would like to make sure there are no contentions to the proposal at a high level. That will give @POSA adequate time to address them.

I want to voice my personal interest and state that this will not be done in a silo but very open with regular updates to the DAO and community. The funds will not simply be put into a black box and a paper comes out a few months later. Lido will have an active voice in the process, drafting the documents, as well as the working groups as they are stood up.

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New snapshot is now live here: Snapshot

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As the second snapshot period has now begun, I would also like to voice my support for this proposal. Legislation will become more painful over time if we do not get ahead of it. The infrastructure bill was a clear example of the industry as a whole being behind the 8-ball when it came to bills passing through congress.

If Lido shows an effort to work with legislators, we can mold bills prior to them being proposed (cc: @vsh who wanted to get started now). Providing clear and detailed explanations of staked assets to legislators will show future stakers that we care about the longevity of staked assets globally.

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