Why is there no interest in the LDO token, serious question

hi everyone

never on this message board is there any serious discussion about bringing any sort of utility beyond “governance” to the LDO token. why is that? why is no one on the core team interested in this?

LDO keeps sliding down the ranks of coingecko, now outside the top 40. It has been replaced by 4 different gas tokens (OP, INJ, IMX, VET). Notably ALL these gas tokens have exponentially less TVL but the market values them more, BECAUSE THEY HAVE UTILITY AS GAS TOKENS.

LDO has no utility except for governance which the LDO team wants to remove some voting rights and give to stETH. Governance tokens are capped in potential value. 90% of the coins higher ranked than LDO are all gas tokens. The others are wonderful dog coins, chainlink which just introduced staking and uniswap. So the only project thats a governance token is uniswap and they essentially had to lie about the fee switch which will never occur, to get to that spot.

quantifying the matter, it would be good if LDO became a gas token or a dog coin. if it remains as a valueless governance token thats where the token goes to die.

I’d also like to point out that @jbeezy and @Seraphim on twitter recently left the Lido project. I cant help but ask why did they leave? Does anyone have insider knowledge that they were fired for a particular reason? Are the telegram messages, email, etc. floating around that show that they left for any particular reason? If so, it would be transparent for the community to see that. Otherwise, you have insider knowledge …


clearly the move was for lido to have its own execution environment given that it has all the stETH, and in this make LDO a gas token

this is like my 5th account on this message board after being censored so many times. governance tokens generally do not have significant value as was stated before. the market does not place a premium on governance tokens sir. the market places a premium on gas tokens. LIDO literally has all the stETH. why is it not a good idea for Lido to have its own execution environment for this stETH to be plugged into defi?

ive said this many times over the year. @vsh shut this down. now were out of the top 40. @vsh also went long eth on the lido treasury at $4,000 per coin. perhaps he does not understand economics but is a really good coder?


why should i spend my precious time doing such a thing? u know one time i offered to help the dao set up an OTC desk so Kanav would stop dumping on binance (he plead the 5th numerous times recently if u didnt know) and @vsh offered me 400 LDO tokens which was about $500 usd at the time LOL

so i just want to be clear, there is no interest in the LDO price and the LDO team is ok with the LDO token continually dropping ranks on gecko, being constantly replaced by gas tokens? this does not bother you? you are so altruistic that you just want to support staking! if this is the case, then the team should give up all their ldo tokens and just get rid of the token completely. give it to other teams to further build out the protocol and the team should just burn 100% of their supply.

will they commit to this? of course not. why? bc they want money.

i’ve written many posts about ldo should have its own L1/L2 environment, many posts about how bad the team is at treasury management and a lot more… these are my original posts … Profile - LIDO - Lido Governance

please acknowledge that @vsh has rejected making LDO a L1 or L2. so why would I spend time doing this proposal ?

so just to be clear, u are totally okay with LDO just staying as a governance token which is quantifiably NOT the way to make it go up in value?

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this is rich. why am i so critical of it? have a look at the MKR/ETH chart, wonderful TVL governance token that just only goes down. there is never ending dumping on the supply, the founders do not announce their sales (i think there have been some), yet it has the greatest potential in the world to bring all the chains together and do something special. instead it just wants to remain as a governance token …

I’d also like to point out that a bunch of the original investors into the Lido round went to prison and also that @vsh had jump crypto lead his round into p2p.org knowing that Do Kwon was on the run and that Kanav did shady things with the Luna project. Why would you do this to yourself @vsh ? why get in bed with these people AFTER it all went down ? Jump Crypto president pleads the Fifth when asked about alleged Do Kwon bribe - Blockworks

relevant quotes below

In a portion of Kariya’s deposition unsealed late last month, Staren suggested that Kwon and Kariya penned a deal on May 23, 2021, weeks after UST had depegged.

UST, Kwon’s algorithmic stablecoin, fell from around $1 to around $0.30 cents on May 9, 2021. By May 12, 2021, LUNA, the token intended to stabilize UST, had plummeted around 99%.

Read more: Just in time: SEC charges Do Kwon, Terraform Labs with fraud

The terms, per Staren’s questioning, were that Jump would help restore UST’s peg by purchasing the token — and in exchange Kwon would allegedly amend Jump’s LUNA loan agreement and lift the vesting conditions.

“And when you asked Do Kwon to lift the vesting conditions in exchange for Jump’s agreement to buy up UST to restore the peg, Do Kwon agreed to that, correct?” Staren asked.

Kariya invoked his right to resist self-incrimination in his response, as he did eight other times in the unsealed section of the deposition.

“On the instruction of counsel I exercise my rights under the Fifth Amendment and decline to answer the question at this time,” Kariya repeated during the deposition, which occurred on Aug. 18 and was filed with the court on Oct. 28.

see here for an old post i made off the top of my head about a LDO L1 or L2.

the vesting recipients + paradigm own well over 300 million LDO tokens, which is appx $640 million USD at current prices

on binance, the median 24h volume for the last year is < $20 mm usd

how will all that sell pressure be absorbed in such small volume? answer it cant, this is why price constant go down, even when the market goes up! there is an endless insider dump constantly hanging over us.

the only way to deal w this incredible mismatch of supply and volume is to create significant demand, BUT as we see there is generally no demand for defi governance tokens without also having some utility. there is generally no interest from @vsh @cobie & co to give the LDO token utility, which means supply will generally outpace demand on generally low volume

is this wrong? please advise

if u dont care about the price of the token, everyone on the team should lock their tokens for 99 years and just use them as governance. this way they can really prove that they are pure altruim for the mission to cement Lido’s position as a leading DeFi protocol.

u start first @kethfinex since u have the moral high ground and dont carea bout price. lock your tokens for 99 years and only use them for governance, show us the way!

{//// retracted ////}


For its worth I will say the following: There seems to be an air of egotistical arrogance that comes through as a veneer of faux altruism as though the token, the price, and the community are “below their line.”

You won. STETH is a top 10 cryptocurrency by marketcap, it is a cornerstone of defi. So why is LDO and the community of holders disregarded so easily? Its a governance token on the verge of losing some of it’s governance power. The fee switch idea has been shelved without even being put to a proper vote that im aware of. We have a monster treasury to do what with exactly? Again STETH is a top 10 currency, you dont need to chase people to integrate it so why not give back to the community that helped to make Lido what it is today by some mechanism like staking, buy/burn, or some of the ways Abel mentioned?

STETH could be worth 500 billion, the treasury could be worth 500 million, and LDO in it’s current state would continue to be worth $2 because why should anyone buy a governance token that is partially stripped of governance power and refuses to give back to holders in any way possible?

And again, if under the guise of altruistic, “in it for the tech, only care about STETH adoption” the token doesnt matter, let LDO holders stake their LDO and distribute the team’s tokens to stakers who have been important advocates of STETH.


Nevermind, forget I said anything. Apologies for the punitive comment, you’re right, it was unfair.

I think everyone is sad to see the performance of the project token today.
As a project, today has been very successful, but for LDO, it was quite a failure!
Should we empower the project’s tokens for the long-term future development of the project? The bull market is about to begin. Don’t project owners want the tokens in their hands to be sold at a good price in the bull market? Don’t keep talking to me about your ideals. Ideally, I suggest that all assets in the DAO be distributed to token holders! Talking about ideals is hypocritical!

So why didn’t the lido team considered steth as the only governance token for the lido protocol, why did they create the lido token itself. If there is no answer for these then the lido token was just created to raise :moneybag:. Am I right or wrong ?

check out the LDO + stETH dual governance: LDO+stETH dual governance (continuation)

This is a paragraph from the discussion link.
“While LDO holders should generally be motivated to maintain the protocol’s well-being since it’s reflected in the LDO token price, it doesn’t necessarily mean that LDO holders efficiently represent the protocol users. For example, imagine that LDO holders collectively decide to increase the protocol fees: while this might have a positive effect on the LDO holders’ immediate well-being, it is clearly against the interests of at least some portion of the protocol users.”

  • Why create the LDO token in the first place if its holder will never efficiently represent the protocol users?

  • Why not instead just govern the protocol by the stETH holders? .Why nobody thought of this in the initial stage of the project development?

  • Was the LDO token just created for funding the project in the initial stage and for the VCs/team to cash in later by dumping in on retail once that vesting schedule ends?

Take for example Alongside Finance.
It offers an index fund token AMKT. All the smart contracts and the parameters and asset inclusion all of this is governed by the AMKT DAO. The people eligible for voting for AMKT DAO are the AMKT token holders which is the product itself that Alongside Finance offers. The team did not create another AMKTGOV token for the governance of the index fund protocol and then gave VETO powers to the AMKT token holders.

It is a hard pill to swallow but the dual governance model is the solution to the problem that was created by Lido Finance itself by introducing the LDO token. I hold LDO token myself…but I now understand that I am making a mistake and I am too dumb to hold. The stETH holder is the one who has skin in the game and can truly represent himself period.

here u go @kethfinex i made the post u asked for! seems like u deleted ur posts on this thread ?

It is not a proposal for me ser but thanks for putting a proposal together, I’m sure it will be of interest to a lot of people.

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u literally asked me to make a proposal and u deleted all ur posts in this thread

whats going on here? why did u delete all the posts?

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