The host of popular crypto analytics and market commentary show Coin Bureau says that Lido DAO ($LDO), which is \u201ca community that builds liquid staking services and governs the direction of Lido\u201d, could have a disproportionate effect on Ethereum\u2019s governance.\u00a0<\/p>\n
https:\/\/youtube.com\/watch?v=pkJYPD-oti0%3Ffeature%3Doembed<\/p>\n
Speaking in a recent YouTube update, Coin Bureau\u2019s host \u201cGuy\u201d told viewers that Lido DAO could eventually become the dominant governance protocol for Ethereum.\u00a0<\/p>\n
Lido, which was\u00a0introduced\u00a0on 15 October 2020, is \u201ca liquid staking solution for ETH 2.0 backed by industry-leading staking providers.\u201d It \u201clets users stake their ETH \u2013 without locking assets or maintaining infrastructure \u2013 whilst participating in on chain activities, e.g. lending.\u201d Lido \u201cattempts to solve the problems associated with initial ETH 2.0 staking \u2013 illiquidity, immovability and accessibility \u2013 making staked ETH liquid and allowing for participation with any amount of ETH to improve security of the Ethereum network.\u201d<\/p>\n
According to the show\u2019s host, Lido Finance operates a liquid staking protocol, which allows users to stake cryptoassets without having to lock them up, thereby allowing the holders to continue trading them freely.\u00a0<\/p>\n
As reported by The Daily Hodl, Guy said,\u00a0<\/p>\n
The short explanation of how this works is that when you stake your cryptocurrency through Lido Finance, the protocol gives you a tradable token that acts as a sort of receipt for the crypto you staked.\u00a0<\/p>\n
Guy argued that $LDO could evolve into the primary governing protocol for Ethereum due to high demand for liquid staking. He argued that the asset was exhibiting a high growth curve and that it could become the \u201cde facto governance layer of Ethereum\u201d once the latter completes its transition to proof of stake.\u00a0<\/p>\n
Coin Bureau\u2019s host told viewers that the Lido Finance team believes it to be \u201cinevitable\u201d that $LDO will become disproportionately influential of Ethereum and that current estimates show the protocol holding \u201c50% of all staked ETH\u201d in the coming months.\u00a0<\/p>\n
https:\/\/youtube.com\/watch?v=VQ_uvak1JPw%3Ffeature%3Doembed<\/p>\n