Lido DAO

We propose to increase by 500,000 LDO the number of incentives for the Shard Labs team who makes Lido on Polygon to 1,500,000 LDO total to reflect that Polygon importance had risen relatively since the first proposal and that the deal was different from our baseline for other networks as well.

Hence, we advocate for the increase with the following changes:

1. Move the first threshold to 1% instead of 2.5%
2. Update steps of market share
3. Increase the number of incentives in the first steps
4. Change vesting conditions

The proposed new incentive structure in detail:

• 150,000 LDO tokens issued with no vesting when Lido for Polygon manages to capture 1% of the staked MATIC supply
• 150,000 LDO tokens issued with no vesting when Lido for Polygon manages to capture 2% of the staked MATIC supply
• 150,000 LDO tokens issued with no vesting when Lido for Polygon manages to capture 3% of the staked MATIC supply
• 150,000 LDO tokens issued with no vesting when Lido for Polygon manages to capture 4% of the staked MATIC supply
• 100,000 LDO tokens issued with no vesting when Lido for Polygon manages to capture 5% of the staked MATIC supply
• 100,000 LDO tokens issued with vesting with 2-year vesting when Lido for Polygon manages to capture 6% of the staked MATIC supply
• 100,000 LDO tokens issued with vesting with 2-year vesting when Lido for Polygon manages to capture 8% of the staked MATIC supply
• 100,000 LDO tokens issued with vesting with 2-year vesting when Lido for Polygon manages to capture 10% of the staked MATIC supply
• 100,000 LDO tokens issued with vesting with 2-year vesting when Lido for Polygon manages to capture 12% of the staked MATIC supply
• 100,000 LDO tokens issued with vesting with 2-year vesting when Lido for Polygon manages to capture 14% of the staked MATIC supply
• 100,000 LDO tokens issued with vesting with 2-year vesting when Lido for Polygon manages to capture 16% of the staked MATIC supply
• 100,000 LDO tokens issued with vesting with 2-year vesting when Lido for Polygon manages to capture 18% of the staked MATIC supply
• 100,000 LDO tokens issued with vesting with 2-year vesting when Lido for Polygon manages to capture 20% of the staked MATIC supply

Payouts will be made via on-chain voting after the milestone is captured and retained for 30 days. The first 5 milestones are not vested, while others (from 6% onward) have linear vesting of 2 years with no cliff (cliff date equals start date).

The threshold of 1% was reached on July 18, 2022 and is still retained. You can see it in the “Lido MATIC staked - digest” block in official Lido’s analytics digest. So if this proposal with the new incentive structure is supported, then an on-chain vote to pay out 150,000 LDO for reaching the 1% threshold will be started.