Spotlight: The New Lido Delegate Incentivization Program
Now's the time to get involved as a delegate for Lido DAO
On July 18th, Lido’s DAO Operations Workstream posted a proposal to establish a public delegate platform and launch a delegate incentivization program. This initiative—not unlike those at other DAOs such as Arbitrum, Aave, and Optimism—aims mainly to draw skilled delegates to the DAO who will participate actively in discussion and governance.
Active delegates whose positions are clearly and publicly articulated also tend to draw delegations from other governance token holders who are either new or largely inactive. For example, if you belong to several DAOs, it’s often difficult to keep up with governance developments and participate in voting in an informed way. But with several public delegates to choose from, you can delegate your tokens — which helps keep the governance of the DAO robust (and less likely to be subject to governance attack).
Stepping Back: A Brief History of Lido Governance
Lido DAO was established in late 2020 to facilitate decentralized staking services on Ethereum. It allows users to stake their ETH while maintaining liquidity through staked ETH (stETH). Lido DAO's governance is carried out by holders of the LDO token, who can propose and vote on decisions that affect the protocol.
In its early days, Lido DAO governance focused primarily on operational decisions, such as setting staking fees and managing treasury funds. Soon enough, governance expanded to include more complex issues like partnerships, integrations, and the deployment of Lido on other blockchain networks, including Solana, Polygon, and others.
Over time, Lido governance has increasingly emphasized decentralization. This shift has led to initiatives like the establishment of governance working groups and the gradual distribution of decision-making power to a broader range of stakeholders within the Lido community. Introducing more formal governance frameworks and enhancing community participation tools have also been key milestones in Lido’s governance evolution.
The Delegate Incentivization Program is part and parcel of these recent efforts; more details follow below.
The Proposal
The delegate incentivization proposal covers setting up a delegate platform on the Lido DAO forum, starting a six-month incentivization pilot (managed by a newly formed Delegate Oversight Committee), and organizing “delegate rallies” to kick it all off. The proposal lists the requirements for becoming a public delegate, which includes a minimum voting participation rate and adhering to a code of conduct, outlines the elements that need to be included in the initial post in the public delegate platform, and details the criteria to be used in the ongoing evaluation of delegate performance.
Incentives
$150,000 in LDO will be distributed to delegates throughout the six-month pilot. Delegates meeting the eligibility criteria (which include two million in LDO delegated) will receive equal shares of the allocated grants, with no delegate to receive more than $15,000 worth of LDO for any three months. “Incentivizing delegates is not just fair but also prevents conflicts of interest,” the proposal states, underscoring that the DAO needs “top-tier professionals with specialized skills.”
Timeline
The Snapshot proposal was passed on August 8th. Here’s an outline of how the program will proceed:
Applications to join the incentivization program will be accepted until August 25th. To apply, post in the appropriate category on the Lido forum, following the guidance provided in the proposal.
A delegate rally will be held from August 26th to September 18th. First-wave delegates will be listed in the UI, which LDO token holders can use to delegate their tokens to the delegates they wish to support. Delegates who receive two million LDO or more in delegations during this phase will be included in the pilot.
The pilot program will begin officially on September 19th and conclude on March 20, 2025.
After the first quarter, first-wave delegates will be evaluated based on the stated quantitative and qualitative criteria. The evaluations will be transparent and public. Those delegates who meet the requirements will receive the appropriate allocation from the incentive program.
Delegates who post applications to the public platform during the pilot's first quarter will be included in the UI for potential inclusion in the second quarter of the pilot, following the exact requirements and process described above.
How to Get Involved
🫵 Want to become a delegate for Lido and participate in the incentivization program? Begin by posting your application here by August 25th.
🫵 Want to be involved in selecting the delegates to participate in the program? Make sure to allocate your LDO during the rally from August 26-September 18th.
How Boardroom Works with Lido
Boardroom is partnering with Lido to enhance its governance by improving visibility and participation. Boardroom’s role will include creating and distributing targeted content through various channels, maintaining a comprehensive governance knowledge base, and engaging new and existing LDO holders. This approach is designed to improve decision-making within Lido DAO by ensuring that governance activities are well-communicated and inclusive, ultimately driving higher participation and better community outcomes.