Lido DAO’s proposed Dual Governance system introduces a timelock mechanism allowing stETH holders to escrow tokens and potentially block proposals. At 1% of total value locked (TVL), participants could pause decisions, while 10% TVL commitment enables full proposal rejection.
This represents a significant power shift from node operators to liquid staking token holders. The system aims to prevent contentious hard forks by creating formalized conflict resolution channels within the protocol.
If implemented, it could set a precedent for other DAOs balancing decentralization with operational efficiency. Critics question whether the complex governance layers might slow decision-making during market crises.
