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Lido Community Wants to Limit Protocol Share in ETH 2.0 Staking

ByLouis Adams

Jun 27, 2022 #Ether
Reading time: < 1 minute

The decentralized organization behind the development of the Lido Finance project has initiated a vote to limit the share of the protocol in the Ethereum 2.0 staking pool.

Lido Finance is a service for liquid staking of cryptocurrencies which allows users to deposit coins in a relevant contract and receive in return the amount of “derivative” tokens that can be used in DeFi services. In the case of Ethereum, these are stETH tokens.

According to Duna Analytics, Lido accounts for over 31% of all ETH in staking.

In the discussion prior to the vote, the authors of the proposal noted authoritative community members recommended limiting the share of one protocol in staking.

For example, Ethereum co-founder Vitalik Buterin stated that one project should not account for more than 15% of ETH.