Lido DAO currently has governance power over most of the protocol code and parameters. In this post, we discuss the current scope of governance, the associated risks, and how these risks can be minimized by reducing the governance scope (via ossification) and by aligning incentives between the DAO and stakers (via dual governance structure). Table of contents Current governance mechanics Scope of governance Worst-case scenarios stETH holders Ethereum network The problem Reducing th...
