Lido DAO Activates 'Community Staking' for Easier Ethereum Solo Staking

Lido DAO recently made a big move towards a more open and decentralized staking system by voting to introduce a new community staking module. This addition brings Lido closer to a fully permissionless protocol, allowing anyone to participate in Ethereum staking. In this article, well explore what the community staking module means for Lido DAO, Ethereum, and the future of decentralized finance.

Lido DAO Approves 'Community Staking Module' to Expand Ethereum Solo Staking Access

Lido Finance, a top liquid staking provider, has introduced a community staking module (CMS) to make Ethereum staking more accessible to a wider audience. Approved by the Lido DAO community, this initiative seeks to lower the high technical and financial requirements often associated with solo staking, opening up opportunities for more users.

As explained by LidoDAOs tech lead Dmitriy Gusakov, CMS will be Lidos first truly permissionless staking option. Initially, it will be available to those involved in Lidos early adoption phase, launched in October, which includes Ethereum and Gnosis solo stakers, credentialed Obol Techne members, and others.

When CMS goes live on the mainnet, anyone with 1.5 ETH (about $3,800 currently) can operate a node and earn validator rewards. Eventually, the required bond will drop to 1.3 ETH, offering an affordable alternative to the usual 32 ETH (approximately $81,000) required for running an Ethereum node, making solo staking an option for many more participants.

Lido Launches Community Staking for Broader Access

Lidos community staking module (CMS) is being launched at a time of active discussion around Ethereum staking, a process critical to securing the blockchain, particularly in terms of solo staking.

A central concern is whether solo stakers offer the same level of network security as large, often centralized, staking services that tend to dominate Ethereum's validator landscape.

Supporters of solo staking, including Ethereum co-founder Vitalik Buterin, argue that individual stakers contribute to a more decentralized and censorship-resistant network. Yet, the technical and financial challenges of running a full node have led many stakers to join pools instead.

With CMS, Lido aims to make solo staking more approachable, allowing participants to stake with only ETH. This contrasts with other models that require larger collateral or more complex setups, positioning CMS as an attractive option for those interested in enhancing Ethereums decentralization.

Dmitriy Gusakov, LidoDAOs tech lead, noted that CMS addresses some ongoing concerns about Lidos impact on Ethereum. Some in the community have expressed worry that Lidos significant market share could lead to excessive centralization. Currently, Lido accounts for less than 30% of the staking market, according to Dune Analytics.

In its commitment to a decentralized future, Lido has already seen strong community support for CMS, with over 370 unique node operators joining the testing phase. LidoDAO members recently approved the CMS launch, with a vote of 60 million LDO tokens in favor, while only one account, with 80 LDO, voted against the proposal during the objection phase.

Text source: CryptoTicker

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