The Lido Community expands its protocol fund with a 20,000 ETH investment

The Lido Community, a decentralized staking protocol, offers a proposal aimed at increasing operational sustainability for Ethereum 2.0.

The Lido Community Expands Its Protocol Fund With a 20,000 ETH Investment

The proposal suggests allocating 20,000 ETH to the protocol fund to balance the current costs and generate additional revenue. The project is currently in the main voting stage, and the results will be announced in the early hours of July 1st. The proposal is supported by a 100% approval rate. Following the voting results, a second voting period will begin.

According to estimates, the 20,000 ETH, which has an estimated annual return rate ranging from 4% to 6%, could potentially generate an additional $2 million in revenue for the Lido protocol. This expected increase emphasizes the community’s proactive approach to ensure the project’s financial sustainability.

Lido aims to follow a strategy that aligns with allocating funds to the protocol fund to create valuable assets that can generate revenue streams. While exploring various ways to maximize participants’ returns by committing a portion of ETH assets, Lido also aims to ensure continuous operational feasibility.

The proposal by the Lido community reflects the collaborative nature of decentralized governance within the project. Community members actively participate in the decision-making process, contributing to discussions and voting, thereby shaping the direction of the protocol. This inclusive approach promotes transparency and allows stakeholders to have a say in the project’s economic aspects.

If the proposal is successfully accepted, the next second voting period will provide the community with more opportunities to incorporate and shape implementation details. This cyclical process allows community members to express different perspectives and contribute to the outcome multiple times

About Lido Community

The Lido Community is a decentralized staking platform that provides liquidity on various blockchains, primarily Ethereum. Staking refers to crypto asset holders locking a specific cryptocurrency for a certain period on a blockchain and contributing to the network’s operation to earn rewards. This platform simplifies the staking process and offers users the opportunity to stake in a liquid manner.