LDO
LDO is the native token of Lido, a liquid staking protocol with onchain voting, safeguarded by stETH holders via Dual Governance.
LDO holders exercise ultimate control through a multi-step governance flow with stETH holder veto protection via Dual Governance. All critical roles flow through governance-controlled contracts. The token has unbounded supply controlled by governance, with token behavior modifiable through controller upgrades.
LDO holders exercise control through multiple governance paths with stETH holder veto protection via Dual Governance.
Governance 1A
Voting (LDO holders) → DualGovernance (stETH challenge window) → EmergencyProtectedTimeLock (time delay) → Executor → Agent → Protocol Contracts. LDO holders have ultimate control, constrained by stETH right to exit when disagreeing. This flow is used for protocol-related contracts.
Governance 1B
Voting (LDO holders) → Protocol Contracts. This flow is used for DAO-related contracts.
Easy Track
An optimistic governance system where certain operations can be vetoed by LDO holders but are assumed to pass. Used for granting, treasury operations, and staking module management. Motions pass automatically unless ≥0.5% LDO objects within 72 hours. Permissionless execution post-timelock if unopposed; rejected motions escalate to full Aragon vote.
All critical roles flow through governance-controlled contracts, ensuring LDO holders maintain ultimate control over the protocol.
Voting
CREATE_VOTES_ROLE allows proposing votes. All LDO holders can vote on proposals. The Voting contract controls the Agent via Governance 1A flow.
Agent
EXECUTE_ROLE is given to Executor. Executor is owned by EmergencyProtectedTimeLock, which is controlled by Governance 1A, which is controlled by Voting contract.
TokenManager
MINT_ROLE is given to Voting contract. BURN_ROLE is given to no one, but its permission manager is Voting contract.
StakingRouter
STAKING_MODULE_MANAGE_ROLE is given to Agent contract. Since Agent is only callable by Governance 1, all operations are controlled by LDO holders.
Protocol contracts are upgradeable by LDO holders. Core governance contracts (DualGovernance, Executor, EmergencyProtectedTimeLock) are non-upgradeable.
Upgradeable Contracts
StakingRouter: proxy_getAdmin is set to Agent.
Agent: Uses Aragon v1 Proxy. Upgrading requires calling setApp(Agent, ...) on the Kernel, which requires APP_MANAGER_ROLE (currently given to Agent itself).
Non-upgradeable Contracts
DualGovernance, Executor, and EmergencyProtectedTimeLock are immutable contracts that cannot be upgraded.
LDO token is immutable but partially upgradeable in practice due to its controller (TokenManager) being upgradeable via Aragon proxy.
Token Contract
The LDO token contract is immutable with no proxy pattern. However, it has a controller address (TokenManager) that can call privileged functions (generateTokens, destroyTokens, enableTransfers, claimTokens). The token's doTransfer function includes a hook that calls the controller.
Controller Upgrade Path
TokenManager is upgradeable via Aragon proxy. Upgrading requires calling setApp(tokenManager, ...) on the Kernel, protected by APP_MANAGER_ROLE, which is assigned to the Agent contract (hence LDO holders).
No supply cap exists, but all mints require LDO tokenholder approval through the Voting contract.
Minting Path
The LDO token's controller (TokenManager) can mint unlimited tokens. However, minting requires MINT_ROLE on TokenManager, which is held by the Voting contract.
Minting path: Voting (LDO holders) → TokenManager → Token.generateTokens()
Deposits are operationally executed by Guardians (node operators + LDO dev team), but Guardians are fully accountable to LDO holders and cannot control protocol parameters.
Guardian Role
User funds deposited into Lido are accumulated in the buffer and can only be deposited into a staking module by DepositSecurityModule, controlled by Guardians. Guardians use automated software for deposit operations.
Guardian Accountability
Guardians are fully accountable to LDO holders—they can be rotated, replaced, or their mandate changed through onchain voting. Guardians do not control protocol parameters or economic risk (staking ratios, fee splits, module shares, or risk parameters).
Controller has burn and transfer-disable capabilities, but BURN_ROLE is currently unassigned. Enabling burning requires LDO governance approval.
Burn Capability
Controller can burn tokens from any address via destroyTokens. Currently, BURN_ROLE on TokenManager is given to no one, but permission manager is Voting contract. To enable burning, proposal must go through Governance 1B to call setPermission on ACL.
Transfer Control
Controller can enable/disable transfers globally via enableTransfers function.
Protocol revenue flows to the LDO-controlled DAO treasury, and a newly approved manual buyback program (up to 10,000 stETH, held by the treasury) creates net buy pressure on LDO, though not a direct distribution. Treasury is controlled by LDO holders; offchain IP is held by DAO-controlled BORG foundations.
Protocol fee flow to treasury:
- Lido charges a 10% protocol fee on all ETH staking rewards, split onchain by the StakingRouter into a module fee (to node operators) and a treasury fee (to the LDO-controlled DAO Agent).
- Calling
getStakingFeeAggregateDistribution()on the StakingRouter currently returns an aggregated treasury fee of ~6.15% and module fees of ~3.85% (basePrecision = 100), meaning ~6.15% of all ETH staking rewards accrue to the DAO treasury on every oracle report.
Buyback program:
- Governance has authorized the Lido Growth Committee to buy back LDO using up to 10,000 stETH (from the accumulated fee described above), in 1,000 stETH batches via Easy Track motions (3-day objection window for LDO holders, 3% max slippage) while a favorable LDO/stETH ratio persists. Execution spans onchain (CoW, 1inch, Uniswap) and offchain venues (Binance, Bybit, OKX, Gate, Bitget).
- This is independent of the anticipated automated NEST buybacks in Q2 2026. Value accrues to the LDO-controlled DAO treasury (buyback-and-hold), but is not directly distributed to LDO holders.
Treasury is the Agent contract, fully controlled by LDO holders. Treasury decisions are excluded from Governance 1 scope (stETH holders cannot challenge).
Treasury Control
The Lido DAO Treasury is the Agent contract itself. The Treasury Management Committee proposes and enacts strategies via Governance 2 (Easy Track). All treasury decisions are controlled by LDO holders.
Revenue Flow
LDO holders, via Governance 1A, control treasury revenue by approving staking modules and setting each module's treasury fee in the StakingRouter. This fee determines the portion of staking rewards routed to the Lido treasury.
To add a new staking module or update it with new fees, full governance flow required, hence controlled by LDO holders.
Aragon has not verified additional offchain value accrual flows to the LDO token
LDO token source is publicly available and verified on Etherscan. Lido core protocol contracts are open source and verified.
The LDO token contract source code is publicly available on GitHub (MiniMeToken) and verified on Etherscan.
Lido core protocol contracts are open source on GitHub.
Aragon has not yet verified the distribution of LDO holders outside of the core team.
Aragon has not yet verified the distribution of LDO holders outside of the core team is greater than 50%
Aragon has not yet verified the supply schedule criteria for the LDO token
European trademark registrations for LIDO list Lido Labs Foundation as the owner. Lido Labs, Ecosystem, and Alliance BORG Foundations are DAO-controlled entities managing offchain IP and distribution.
European trademark registrations for LIDO list Lido Labs Foundation as the owner.
Lido Labs BORG Foundation, Lido Ecosystem BORG Foundation, Lido Alliance BORG Foundation is a memberless DAO-adjacent foundation companies under which the Lido DAO has defined governance controls (including appointing/removing directors and overseeing BORG structures).
Lido Labs BORG Foundation, Lido Ecosystem BORG Foundation, Lido Alliance BORG Foundation is a memberless DAO-adjacent foundation companies under which the Lido DAO has defined governance controls (including appointing/removing directors and overseeing BORG structures).
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