- In an effort to develop a completely permissionless staking protocol, Lido DAO decided to include the community staking module.
Lido Finance, a prominent provider of liquid staking, has introduced its community staking module in an effort to increase staking’s accessibility. After been approved by the Lido DAO community, this project aims to lower the historically high technical and financial hurdles to solo staking and increase the inclusivity of Ethereum staking.
LidoDAO tech head and community member Dmitriy Gusakov stated that CMS will eventually become Lido’s first permissionless staking module. Participants in Lido’s “early adoption” period, which began in early October and includes Ethereum and Gnosis solo stakers, Obol Techne credential holders, and others, will be the only ones able to use the protocol at launch.
Anyone with 1.5 ETH will be able to bond their tokens to earn validator awards and become a node operator once the mainnet is operational. Although the next round of validators will have a reduced bond requirement of 1.3 ETH, that still amounts to almost $3,800 at current rates. In any case, that is significantly less than the 32 ETH (about $81,000) required to spin up an Ethereum node.
The launch of Lido’s CMS software coincides with discussions concerning the future of Ethereum staking, particularly solo staking, which is the method used to secure the second-largest blockchain.
One of the main questions is whether solo stakers truly offer the same security advantages as more established, centralized, and professional staking services that tend to concentrate power distribution on Ethereum.
Ethereum developer Vitalik Buterin is an advocate of solo staking, arguing that individual stakers decentralize the validator set, keeping the network immune to censorship. However, the technological and financial obstacles to setting up a whole node encourage users to join staking pools.
CSM will be among the most accessible Ethereum staking options for solitary stakers due to its easy setup. CSM is a compelling choice for individuals who wish to support Ethereum’s decentralization because it permits participants to utilize simply ETH, in contrast to alternative solutions that call for a larger bond, secondary forms of collateral, or intricate ticket processes.
Gusakov pointed out that the introduction of the community staking module is an attempt to resolve some of the issues that have plagued Lido ever since the protocol first appeared. Many contend that there is an excessive concentration of power within a few number of significant token holders and that Lido’s control on the staking market share has compromised Ethereum’s security. According to Dune Analytics, Lido presently holds less than 30% of the staking market share.
Both Ethereum and the community staking module are protocols. claiming that Lido has been making progress toward its decentralization objective. The CMO testnet, which was started in June of last year, now has over 370 distinct node operators.
Members of LidoDAO voted in favor of the CMO’s release and activation by pledging 60 million LDO tokens. It seems that only one voter opposed the integration, contributing roughly 80 LDO tokens. The proposal was voted against by the same account during the “objection phase.”
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