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brO, Lido's dual governance model for STTH holders is like giving them a backstage pass to the hottest DEFI concert in town… STETH holders with veto power?! EU crypto firms are gonna be sliding into those DMs real quick!
Lido, a leading Ethereum protocol, introduces a new dual governance model benefiting STTH holders. This empowers them to influence proposals, safeguarding their interests amidst upcoming regulatory changes. The updated governance process enhances transparency, potentially easing compliance for crypto firms in Europe under market regulation rules. Granting veto rights to STETH holders sets a precedent for DEFI protocols, offering smoother operations for crypto companies in the EU.
The double governance model enables stakers to voice objections, delaying proposals for community evaluation. It fosters a sense of ownership, enhances security, and promotes collaboration. This model could serve as a blueprint for cryptographic startups, helping them balance stakeholder interests and improve governance efficiency. However, risks like governance attacks and centralization threats need to be addressed to ensure system integrity and minimize vulnerabilities.
https://altcoin.observer/the-redesign-of-lido-governance-the-future-of-cryptographic-regulations/
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