Lido DAO Announces Community-Operated Staking
In a move to boost the decentralization of Ethereum and democratize access to staking, the Lido DAO community approved the proposal to develop a Community Staking Module (CSM). As of January 19, the DAO has shared developments about this new functionality.
The CSM is set to soon reveal details about rewards, penalties, staking allocation, and information about validator exits, ahead of the official launch of the module, planned for the second half of 2024.
Currently, the Lido project only has a Node Operator module, which is curated by the DAO and consists of 37 professional staking providers.
The CSM brings significant benefits to Lido DAO stakers by introducing Ether (ETH) as the sole asset for rewards without involving other digital assets.
Node operators will benefit from a user-friendly experience and lower gas fees for on-chain operations. The CSM will also offer an opportunity for node operators to earn more rewards.
"Lido DAO is paving the way for a new era of more democratic and decentralized staking, reinforcing its position as a major player in the crypto ecosystem," highlighted analyst Ekta Mourya.
Advantages of Community Staking in Lido DAO's Model:
1- Higher Staking Rewards: Community staking models, like Lido DAO's, often offer higher rewards than traditional staking.
2-Reward Distribution Mechanism: These models may have mechanisms favoring smaller stakers or those contributing in diverse ways in the community, including governance participation.
3-Token Appreciation: Successful community staking can enhance network health and user participation.
4-Access to Special Features or Privileges: Participants in community staking might receive additional benefits, such as governance rights or eligibility for future airdrops.
5-Lowered Barriers to Entry: By reducing the capital required for effective participation, community staking allows more individuals to partake and earn rewards.
6-Network Growth and Stability.
