The DAO Delegation Handbook V1
  • Introduction
  • Part 1: Structuring and Growing DAO Delegates
    • Summary
    • Understanding Delegation
    • The Strategic Value of Professional Delegates
    • Case Studies & Industry Benchmarks
      • 1inch
      • Uniswap
      • Push DAO
      • Optimism
      • Sky
      • Lido DAO
      • Gnosis DAO
      • Arbitrum
      • Aave
      • Rari DAO
      • Paraswap DAO
      • Polygon
      • Key Takeaways from Delegate Programs
    • Reframing Compensation
    • Effective Delegate Program Design
      • Delegation Infrastructure
      • Community Engagement & Visibility
      • Accountability & Performance Standards
      • Transparency & Reporting
      • Diversity & Governance Balance
    • Sustaining & Evolving Delegate Programs
    • Ready, Set, Delegate!
    • Appendices
      • Legal Considerations
      • FAQs
      • Glossary
      • Resources
      • Templates
      • Tutorials
  • Part 2: The Delegate´s Roadmap
    • Summary
    • Becoming a DAO Delegate
    • Getting Started: Laying the Foundation
    • Establishing Your Delegate Profile
    • Core Responsibilities of a Delegate
    • Essential Tools for DAO Delegates
    • Exemplary Delegate Practices and Case Studies
    • Scaling Your Impact as a Delegate
    • The Future of DAO Delegation
    • Appendices
      • Legal Considerations
      • FAQs
      • Glossary
      • Resources
      • Templates
      • Tutorials
  • About StableLab
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On this page
  • Overview
  • Compensation Structure & Eligibility
  • Governance & Oversight
  • Implementation Plan & Timeline
  • Key Takeaways
  1. Part 1: Structuring and Growing DAO Delegates
  2. Case Studies & Industry Benchmarks

Lido DAO

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Last updated 17 days ago

Overview

In Q3 2024, Lido DAO launched a Public Delegate Platform and Delegate Incentivization Program (DIP) to increase governance participation, enhance discussion quality, and activate new token holders through delegation.

This initiative was led by the Lido DAO Operations Workstream, in collaboration with Agora. The program was designed to address quorum challenges, strengthen governance engagement, and incentivize top-tier delegates.

Compensation Structure & Eligibility

Pilot duration: 6 months (Q3 2024 – Q1 2025) Budget: $150,000 in LDO, allocated at $75,000 per quarter

Eligibility

  • Hold 2M+ LDO delegated on Aragon & Snapshot

  • Participate in 70%+ of votes per quarter

  • Engage in proposal discussions and community updates

Compensation

  • Delegates meeting the criteria receive an equal share of allocated LDO

  • No delegate can receive more than $15,000 per quarter

Governance & Oversight

The Delegate Oversight Committee (DOC) ensures:

  • Voting participation and engagement standards are met

  • Delegates adhere to the Code of Conduct

  • Public reports on delegate activity and funding allocations

Implementation Plan & Timeline

  • Q3 2024 – Proposal introduced & approved via Snapshot vote

  • Q3 2024 – Delegate application period & rally to attract token holders

  • Q3 2024 – DIP officially launches with the first incentive cycle

  • Q4 2024 – First incentive payments distributed based on delegate performance

  • Q1 2025 – Q2 eligibility cutoff & second incentive cycle begins

Key Takeaways

  • Lido DAO formalized a structured delegation system, providing visibility and incentives to quality governance participants.

  • Delegates are held accountable via participation metrics, transparency requirements, and a governance oversight body.

  • The Delegate Incentivization Program (DIP) ensures fair compensation, preventing conflicts of interest and governance inefficiencies.

  • Ongoing evaluations refine the system to maximize engagement and voting quality over time.

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Source: Lido Governance Manual