These attributes clearly need work and Lido is actively working on solutions and improvements. We welcome input from the DAO, our partners and the wider community as we seek solutions
Lido governance has significant safeguards
Governance
Needs improvement
Currently, the Aragon votes are two-phased. The first phase is regular vote, and the second one is time-lock with objections, during which LDO holders can only vote 'against' or change their vote from 'for' to 'against'.
There’s a robust set of Lido governance delegates
Governance
Needs improvement
Lido DAO currently has vote delegation for Snapshot votes; however, the delegate set is limited and significant amount of voting power is undelegated and dormant.
Lido is working on improving the delegate set and educating DAO members about vote delegation.
Delegation is enabled in onchain Lido governance
Governance
Needs improvement
Currently, delegation is only enabled for Snapshot votes. Lido is actively researching possible mechanics for onchain delegation.
There is a way for stakers to resist malicious governance capture
Governance
Needs improvement
Presently, Lido on Ethereum is controlled by LDO token voting via an Aragon DAO. This includes the Lido treasury, staking withdrawal keys, node and oracle operator lists, DAO Access Control List (ACL) permissions, the execution of EVM scripts, and more. As such, the voting app is effectively root access to Lido.In order to reduce the power LDO holders have over the protocol, when faced with a critical governance decision that could negatively impact stakers, stakers should be able to block Lido governance from executing the decision, and exit the protocol if an agreement cannot be reached. There's a way for new operators to enter the set and prove themselves
Validator market
Needs improvement
Lido is actively researching ways to allow permissionless operators to join its validator set, including working with SSV Network and Obol on DVT, as well as exploring ways for solo stakers to participate in the protocol.
There's a way to reduce stake to operators who do not conform to Lido standards
Validator market
Needs improvement
Lido is working on stake (re-)allocation mechanisms based on performance and off-chain attributes, as well as developing and lobbying for solutions to allow for penalizing malicious actors (e.g. triggerable exits).