Lido Stakers Granted Power to Block DAO Decisions

Developers of the liquid staking platform Lido Finance have announced the LIP-28 Dual Governance update, enabling stETH holders to delay and block DAO decisions.

Dual Governance: Coming Soon

Years in the making, Lido DAO contributors are proud to present an outline for the upcoming release of Dual Governance featuring design & code choices, parameters, deployment & rollout.https://t.co/Iu7J1cOlcr

— Lido (@LidoFinance) May 9, 2025

The new mechanism will allow ordinary stakers to block decisions made by LDO governance token holders.

Currently, users who disagree with DAO decisions cannot withdraw their tokens from staking quickly enough, despite a timeout before the implementation of accepted proposals.

Lido developers have proposed a “dynamic” delay system, where stakers can express their disagreement and desire to exit the protocol. To do this, they need to transfer their stETH to a specially created escrow contract.

Once a threshold amount is reached (the team suggested a value of 1% of all Lido ETH in staking), the delay of the DAO decision begins to increase proportionally to the number of tokens.

If the amount in the contract exceeds a second threshold (tentatively 10%), the initiative will be completely blocked until all dissatisfied stakers withdraw their funds.

Back in the summer of 2025, the Lido team plans to release the V3 update with modular smart contracts stVaults.