Lido DAO
Last updated
Last updated
Author: Emir Olgun Date: 02 July 2023
This is a research about finding the DAO tools used by the most popular DAOs on variety of Blockchains and why they use these tools. In this document, we researched Lido DAO. Lido is a liquid staking solution. Lido allows users to stake their assets - without locking or maintaining infrastructure - whilst participating in on-chain activities, e.g. lending, LPing.
Lido DAO governance process can be seen here in detail:
Lido Governance has three steps that are Discussion step, off-chain vote, and on-chain vote. This process is used to eliminate possible unnecessary proposals or improve proposals, and prevent financial burden and voter fatigue of on-chain votes for unnecessary and poorly designed proposals.
Lido DAO proposals start in the Resarch Forum. These proposals are discussed on the forum and get community feedback.
Proposals go through a phase of
improvements
objections
Improvements
By community feedback and discussions the proposals are improved.
Objections
The proposals are further improved with the objections from the community.
Timeframe: 7 days
After a proposal passed the discussion step on the forum, it is voted on the Snapshot platform. The step of off-chain voting brings down the financial burden of on-chain voting by eliminating unpopular proposals. Lido DAO has a governance token called LDO(Lido DAO Token). This token is used to vote on both off-chain and on-chain votes.
The off-chain voting parameters of Lido DAO are:
Voting power is linearly proportional to the token balance of the voter.
Minimum quorum is more than 5% of the total token supply must participate.
Timeframe: 7 days
At least 24 hours before Aragon vote.
This is the final step of governance. Aragon is used to conduct on-chain voting. This vote has gas fees, so Lido DAO combines several proposals into packages to reduce operational burden and voting fatigue. These are called Omnibus Votes. People who have LDO token can participate the votes.
The on-chain voting parameters of Lido DAO are:
Timeframe: 72 Hours and has two phases:
Main Phase lasts 48 hours where voters can vote both For and Against
Objection Phase lasts 24 hours and voters can vote against or change vote from for to against.
Minimum quorum: More than 5% of total tokens must vote and more than 50% of participated tokens must vote For
Snapshot is a voting platform that allows vote easily without gas fees. The reason behind gas fee free vote is these votes are off-chain votes. A DAO can customize the the voting process according to their needs on this tool.
Official Resources
Other Resources
Aragon is an on-chain DAO governance platform. Aragon allows DAOs to conduct governance on-chain without writing a single line of code. The votes on Aragon can be customized to the specific needs of the DAO.
Official Resources
Other Resources
Joining Lido Discord is a simple process, joining the server and accepting some conditions are the requirement. However, only way to get LDO(Lido DAO Token) is to buy it on variety ofexchanges. LDO is needed to have a say in Lido DAO governance process.