Lido Ecosystem Grants Organization (LEGO) — Framework Update 1 October 2025

Description

Summary

This proposal introduces several updates to the Lido Ecosystem Grants Organization (LEGO) framework, reflecting operational learnings and spending patterns over the past two years.

The changes aim to optimize fund allocation, simplify the budget structure, and refresh the LEGO Council composition.

If voted for, these changes will take effect on 1 October 2025, 00:00 UTC.

Motivation

LEGO has consistently supported ecosystem initiatives in research, development, and community growth. LEGO Quarterly Reporting provides more details about the grants’ history.

Having reviewed LEGO’s activity and spending data, the LEGO Council identified several proposed adjustments to improve efficiency and ensure better budget accuracy.

Proposed Changes

1. Adjust Quarterly Budget

• Before: $500,000 per quarter
• Going forward: $250,000 per quarter
• Applicability: effective for grants initiated after 1 October 2025, 00:00 UTC

Rationale: Historical spending data shows LEGO’s actual quarterly disbursements rarely exceeded $250k. Reducing the quarterly cap will align it better with observed spending trends while maintaining sufficient flexibility for grantmaking.

2. Budget Composition — USD-pegged Stablecoins Only

• Remove the LDO token allocation, maintaining the LEGO budget solely in USD-pegged stablecoins (e.g., USDC, USDT on Ethereum mainnet), subject to availability and compliance.

Rationale: Over the past two years, less than 2% of LEGO grants were disbursed in LDO. Given this low demand, moving to a stablecoin-only budget will streamline accounting, improve grant value predictability, and simplify operations.

3. Personal Grants Pool of $15,000 per member

• Each LEGO Council member may approve small grants up to an aggregate of $15,000 per calendar quarter, within program tiers (previously - 15,000 LDO split into 20% LDO and 80% DAI or another USD-pegged coin);
• This is an authorization limit only (not an entitlement or personal funds).

Rationale: Aligns individual pools with the program's total budget.

4. Dissolution of LEGO Nominees

• Discontinue the LEGO Nominees program, as introduced in this proposal;
• Exception: For the avoidance of doubt, grants approved by the Nominees prior to these updates are unaffected (including approvals made in October 2025);
• Return unused Nominee-specific pools to the Lido DAO Treasury.

Rationale: Participation from Nominees has remained limited, with few proposals routed through their individual channels. Consolidating evaluation and funding decisions under the LEGO Council will simplify governance while maintaining transparency and effectiveness.

5. Update to LEGO Council Composition

• Replace Sam K with zuzu-eeka as a LEGO Council member.
• Update relevant multisigs/signers to reflect this change without altering existing signature thresholds; existing approvals remain valid.

Rationale: This update ensures continued engagement, operational continuity, and balanced representation within the LEGO Council.

Specification

If approved, the proposal will:

• Reduce LEGO’s quarterly budget allocation to $250,000 in stablecoins;
• Use USD-pegged stablecoins only (no LDOs) for LEGO;
• Discontinue the LEGO Nominees program and return all unused Nominee funds to the DAO treasury;
• Appoint zuzu‑eeka to the LEGO Council in place of Sam K and update relevant multisig signer sets;
• Reflect these updates in LEGO’s public documentation;
• No changes will be made to LDO Easy Track contracts, so that LEGO can transfer tokens to the Delegate Oversight Committee for the distribution of grants under the Delegate Incentivization program.

Compliance & Non‑Binding Notes

• No obligation to award any grant; all awards remain discretionary and subject to budget, program terms, and compliance (sanctions/AML/eligibility checks).
• No employment/partnership/joint‑venture/agency or fiduciary relationship is created by this proposal.
• Grantees are responsible for their own tax/legal obligations.