Lido DAO Community Staking Module to make mainnet debut in the second half of 2024
- Lido DAO paved the way for community stakers to utilize the protocol and run validators through the Community Staking Module.
- Lido shared an update, setting a timeline for the second half of 2024 for Community Staking’s mainnet launch.
- Lido TVL is near its all-time high as of January 19 as Ethereum and related cryptocurrencies rally this cycle.
Lido DAO community approved the proposal to develop a Community Staking Module (CSM) on December 15, 2023. The DAO shared a development on the feature on January 19.
The staking platform will soon drop details on rewards, penalties, staking allocation and validator exit details ahead of the mainnet debut of the module, planned for H2 2024.
What is the Community Staking Module?
Lido’s purpose is to boost Ethereum’s decentralization and democratize access to staking. The project currently has only one Node Operator module, and it is curated by the DAO. The Node consists of 37 professional staking providers.
To boost Lido’s decentralization, the protocol decided to incorporate more Node operators and allow for their permissionless entry. This is where the Community Staking Module comes in.
How will it benefit crypto market participants?
The Community Staking Module is a rewarding addition to Lido DAO stakers as it introduces Ether (staked Ether stETH) as the only asset for rewards without involving other digital assets. Node operators will benefit from a friendly UX and pay less gas fees for on-chain operations. CSM would also offer an opportunity for Node operators to earn more rewards.
Timeline for CSM mainnet debut
According to details shared in an official blog post by Lido, CSM will go through the Holesky Testnet phase in Q2 2024 and between Q3 and Q4 of 2024, that is, in the second half of the year, market participants can expect the module’s mainnet debut.
LDO, the token of LidoDAO, is likely to benefit from the protocol’s decentralization. At the time of writing, LDO price is $3.088, posting nearly 2% gains on the day.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
