|
| 1 | +# Guide to Dual Governance |
| 2 | + |
| 3 | +[The Dual Governance interface](https://dg.lido.fi/) provides stETH holders with tools to monitor the governance state, escrow tokens for Veto Signaling, manage them during Veto Signaling and withdraw after a Rage Quit. |
| 4 | + |
| 5 | +For more information about Dual Governance [visit the blog](https://blog.lido.fi/dual-governance-101-explainer/) or check [the specification](https://github.com/lidofinance/dual-governance/blob/3e0f1ae5740ef8410e928f6cc106e3a5f45a5a75/docs/specification.md). |
| 6 | + |
| 7 | +## Understanding Governance State |
| 8 | + |
| 9 | +1. Visit [https://dg.lido.fi](https://dg.lido.fi/) |
| 10 | +2. Ongoing proposals and their status are listed on the right side of the block. To learn more about the proposals, scroll down and click for more details. |
| 11 | + |
| 12 | + |
| 13 | +3. The current governance state is displayed on the left side of the block. |
| 14 | + |
| 15 | + **Normal state**: A proposal can be submitted to Dual Governance. After the default 3-day timelock, the proposal becomes executable. |
| 16 | + |
| 17 | +  |
| 18 | + |
| 19 | + *The background turns yellow when 30% of the first threshold (Veto Signalling, 1% of total stETH supply) is reached, though the governance state remains Normal.* |
| 20 | + |
| 21 | +  |
| 22 | + |
| 23 | + **Veto Signalling**: Governance motions are blocked for 5 to 45 days, depending on the amount of opposing tokens. Submission of new proposals remains active during this period. To find out details and join the ongoing discussion, click on the **Public Report** link. |
| 24 | + |
| 25 | +  |
| 26 | + |
| 27 | + **Rage Quit:** Governance motions are blocked until tokens in the escrow exit the protocol. Submission of new proposals remains active during this period. |
| 28 | + |
| 29 | +  |
| 30 | + |
| 31 | + **Deactivation**: A brief period indicating Veto Signalling is about to end, after which non-cancelled proposals will be available for execution in the next state. Proposal submission is blocked during Deactivation. |
| 32 | + |
| 33 | +  |
| 34 | + |
| 35 | + **Cooldown:** Transitional state after Veto Signalling or Rage Quit when pending proposals can be executed even if the opposition is higher than 1% of the total stETH supply. |
| 36 | + |
| 37 | +  |
| 38 | + |
| 39 | +4. Check the progress bar to see how much stETH has been added to the escrow and how much remains before the threshold is reached and the governance state changes: |
| 40 | + |
| 41 | +  |
| 42 | + |
| 43 | + |
| 44 | +## How to signal your opposition |
| 45 | + |
| 46 | +**Step 1: Connect your wallet** |
| 47 | + |
| 48 | +1. Go to Dual Governance page [https://dg.lido.fi](https://dg.lido.fi/) |
| 49 | +2. Click `Connect wallet` button in the upper right corner or under the proposal listing block |
| 50 | + |
| 51 | +  |
| 52 | + |
| 53 | + |
| 54 | +**Step 2a: Select the amount of stETH** |
| 55 | + |
| 56 | +1. Click `Go to Veto Support` button |
| 57 | + |
| 58 | +  |
| 59 | + |
| 60 | +2. Select the amount of stETH tokens you want to add to the escrow for signaling your opposition to LDO governance decisions |
| 61 | + |
| 62 | +  |
| 63 | + |
| 64 | + To select **wstETH**, click the second tab and select the amount to deposit. Inside the Dual Governance, deposited wstETH will be converted **to stETH at a 1:1 ratio**. |
| 65 | + |
| 66 | +  |
| 67 | + |
| 68 | +3. Press `Unlock tokens and support Veto` |
| 69 | +4. To check your tokens in Dual Governance, click the double shield icon in the upper right corner: |
| 70 | + |
| 71 | +  |
| 72 | + |
| 73 | + |
| 74 | +**Step 2b: Select the withdrawal NFT** |
| 75 | + |
| 76 | +If you have already requested a withdrawal [in the Lido staking widget](https://stake.lido.fi/), you can use your withdrawal NFT to support Veto Signalling. This helps delay proposal execution until your ETH has exited the protocol. |
| 77 | + |
| 78 | +1. Click `Go to Veto Support` button |
| 79 | +2. Select the third tab **Withdrawal NFT** |
| 80 | +3. Select the NFT you want to use to support Veto Signalling by its ID |
| 81 | + |
| 82 | +  |
| 83 | + |
| 84 | + |
| 85 | +## How to manage tokens within the Dual Governance |
| 86 | + |
| 87 | +Unless Rage Quit is triggered, you can deposit and revoke tokens from the Veto Signalling escrow at any time (subject to a minimum 5-hour timelock). Once Rage Quit is activated, all (w)stETH tokens in the escrow are automatically queued for exit. |
| 88 | + |
| 89 | +**Step 1: Switch to Manage tokens tab** |
| 90 | + |
| 91 | + |
| 92 | + |
| 93 | +**Step 2: Revoke tokens from the escrow** |
| 94 | + |
| 95 | +1. Choose the amount of tokens you want to revoke from the Veto Signalling contract |
| 96 | + |
| 97 | +  |
| 98 | + |
| 99 | + or select withdrawal NFT ID |
| 100 | + |
| 101 | +  |
| 102 | + |
| 103 | +2. Sign the transaction |
| 104 | + |
| 105 | +**Note** that if your NFT finalizes during Veto Signaling, you must first **revoke the NFT** from the Veto Signalling escrow, then **claim your ETH** [in the Lido staking widget](https://stake.lido.fi/). |
| 106 | + |
| 107 | +## How to withdraw tokens after the Rage Quit |
| 108 | + |
| 109 | +If Rage Quit is activated, all tokens deposited in the Veto Signalling escrow will be queued for exit. (w)stETH tokens **cannot be revoked from the escrow,** nor can the exit process be stopped **until the Rage Quit is finished** and the tokens are withdrawn. |
| 110 | + |
| 111 | +After the Rage Quit batch of tokens is finalized, they are processed as follows: |
| 112 | + |
| 113 | + - (w)stETH tokens are claimed **automatically**; |
| 114 | + - withdrawal NFTs **must be claimed manually**. |
| 115 | + |
| 116 | +Once claimed, all ETH remains in contract where LDO governance has no control over it. However, it is subject to an additional timelock of **60-180 days** before ETH becomes available for final withdrawal. |
| 117 | + |
| 118 | +The current status of your tokens and remaining timelock are indicated on the **Manage tokens** tab. |
| 119 | + |
| 120 | + |
| 121 | + |
| 122 | +**Step 1: Switch to the Manage tokens tab** |
| 123 | + |
| 124 | + |
| 125 | + |
| 126 | + **Step 2a: Claim your withdrawal NFT** |
| 127 | + |
| 128 | +After the NFT finalizes you can claim it immediately. **A 60-day window** after Rage Quit finalized is provided to claim before execution becomes unblocked. |
| 129 | + |
| 130 | +1. Click `Claim` button next to the NFT |
| 131 | + |
| 132 | +  |
| 133 | + |
| 134 | +2. Select the NFT by its ID |
| 135 | + |
| 136 | +  |
| 137 | + |
| 138 | +3. After claiming, your ETH will be locked for 60-180 days before becoming available for withdrawal. The remaining time will be indicated on the **Manage tokens** tab |
| 139 | + |
| 140 | +  |
| 141 | + |
| 142 | + |
| 143 | +**Step 2b: Claim a withdrawal NFT you don’t own by its ID.** |
| 144 | + |
| 145 | +If you don't currently have access to the wallet that owns the withdrawal NFT (for example, if you're managing operations from a different address), you can claim a withdrawal NFT using its ID. |
| 146 | + |
| 147 | +Note that **claiming the NFT does not transfer ownership**. It locks the corresponding ETH in the Dual Governance. **Only the NFT owner** will be able to withdraw the tokens once the lock period ends. |
| 148 | + |
| 149 | +1. Go to the **Claim Non-Owned NFT** section |
| 150 | + |
| 151 | +  |
| 152 | + |
| 153 | +2. Enter the NFT ID and click `Claim` |
| 154 | + |
| 155 | +  |
| 156 | + |
| 157 | +3. The NFT owner will see the updated status in the UI when they connect their wallet |
| 158 | + |
| 159 | +  |
| 160 | + |
| 161 | + |
| 162 | +**Step 3: Withdraw your ETH when available** |
| 163 | + |
| 164 | +1. Visit the **Manage tokens** tab |
| 165 | +2. After the 60-180 days timelock expires, click the `Withdraw` button for available tokens |
| 166 | + |
| 167 | +  |
| 168 | + |
| 169 | +3. Withdraw ETH. It will be deposited into your wallet. |
| 170 | + |
| 171 | +--- |
| 172 | + |
| 173 | +For more context on how Dual Governance works, when to use it, and the rationale behind timelock mechanics, check out: |
| 174 | + |
| 175 | +- [LIP 28 Dual Governance proposal](https://github.com/lidofinance/lido-improvement-proposals/blob/develop/LIPS/lip-28.md) |
| 176 | +- [Dual Governance 101 blog article](https://blog.lido.fi/dual-governance-101-explainer/) |
| 177 | + |
| 178 | +**Need help?** If you are having issues navigating the UI, reach out [on Discord](https://discord.com/invite/lido) or [Telegram](https://t.me/lidofinance). |
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