$LDO is the governance token of Lido DAO, one of the largest Liquid Staking Protocols in the Web3 ecosystem.
1. What is @LidoFinance ?
$Lido is a decentralized protocol that allows users to stake their cryptocurrencies (primarily Ethereum – ETH) without having to lock them for a long period or meet the minimum 32 ETH requirement set by the Ethereum network.
Core product:
When users deposit ETH into Lido, they receive stETH (Lido Staked ETH) in return.
stETH represents the amount of ETH staked plus the staking rewards earned.
This allows users to earn staking rewards while still being able to use stETH in other DeFi activities (such as lending, borrowing, or trading).
2. Utility of the $LDO Token
The $LDO token is not used directly for paying transaction fees or receiving staking rewards.
Its primary purpose is to enable Decentralized Governance within the Lido DAO.
A. Governance Power
$LDO holders have the right to:
Vote on Proposals: Participate in decision-making regarding key updates and changes to the Lido DAO protocol.
Modify Protocol Parameters: Adjust the staking fee rate, decide on the allocation of DAO reserves, and select new node operators.
Upgrade Smart Contracts: Approve critical technical upgrades to Lido’s smart contracts.
B. Tokenomics and Distribution
The distribution of LDO is designed to ensure broad decentralization of governance power:
Wide Distribution:
A significant portion of the LDO supply has been distributed through mechanisms such as public sales, airdrops to early users, and allocations to early-stage investors (subject to vesting schedules over time).
Decentralization:
This wide distribution is essential to ensure that no single entity can fully control or dominate governance decisions within the DAO.
@EdgenTech @LidoFinance
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