Rewards-Share Program 2024

Description

The Rewards Share Committee’s proposal is to adopt a new Rewards-Share Program that will replace the previous Tiered Rewards Share program (approved by Snapshot (end date June 29, 2023).

As with the previous program, the new program helps spread awareness about liquid staking technology and liquid staking tokens like stETH, through sharing some of the middleware usage fees with selected applicants. However, the new program introduces number of changes, summarised below.

Summary of main changes

• Minimum Threshold: The new program will focus on institutional applicants that meet a Minimum Threshold that requires participants to demonstrate that they have already driven at least 40,000 ETH in stake coming from users of the Lido Middleware - this should attract high quality participants.
• No tiers: Instead, the Rewards Share Percentage will be calculated by the Committee, up to a maximum of 50% of the DAO’s 5% share of staking rewards.
• Quarterly payment of rewards-share

For more details about the program please refer to the forum post. Rewards Share committee details located here.

The program will use the remainder of the previous program pool and payments will be made by the same Easy Track factories as in the previous program.

Motivation

The Committee hopes that the changes summarised above will lead to improved performance through increased institutional adoption of stETH, in an effort to better support Lido DAO’s objectives (described in the GOOSE (Guided Open Objective Setting Exercise) Proposal adopted by Lido DAO in the snapshot vote on 22 Sept 2023).