tl;dr
Lido, a leading liquid staking platform founded in 2020, announced workforce reductions to support sustainable growth amid favorable market conditions. Co-founder Vasiliy Shapovalov emphasized the cuts are financially motivated, not due to performance issues. Lido operates as a DAO offering staking ...
One of the leading players in the liquid staking arena, Lido, has announced a workforce reduction aimed at supporting its future development. This downsizing comes at a time when market conditions are favorable, underscoring the company's focus on sustainable growth rather than performance issues. Vasiliy Shapovalov, a co-founder of Lido, clarified that the decision was financially motivated, not due to any decline in the protocol’s performance.
Founded in 2020 by Shapovalov and two other entrepreneurs, Lido operates as a decentralized autonomous organization (DAO) providing staking infrastructure primarily for Ethereum and other blockchain networks. The protocol issues stETH tokens to users who stake their ETH, which represent the amount staked and determine reward sizes. Meanwhile, the LDO token functions as the governance token, enabling holders to propose and vote on critical decisions affecting the DAO’s trajectory.
Recently, the DAO introduced Dual Governance, a trailblazing governance mechanism granting stETH holders the power to delay proposals for up to 45 days, enhancing security and decentralization beyond what peers have implemented. This innovative move exemplifies Lido’s commitment to evolving its organizational structure responsibly.
Despite the job cuts, the protocol’s metrics tell a story of dominance and growth. Lido commands a staggering Total Value Locked (TVL) of over $31 billion, dwarfing competitors like Binance Staked ETH, which holds $10.4 billion. Lido also leads the market in Liquid Staking Tokens, with 8.9 million staked Ether compared to Binance’s 2.9 million, controlling more than 60% market share. Complementing this strength, the LDO token has surged nearly 30% in value over the past month, highlighting investor confidence amid the protocol’s strategic recalibration.