From LNOSG to CMC: Evolving Curated Staking Modules Governance

TL;DR

The proposal introduces the Curated Module Committee (CMC) as a dedicated body to handle the day-to-day operations of Lido’s Curated Modules in light of the upcoming Curated Module v2 (CMv2). The CMC is proposed to be granted governance authority over CMv2, oversight of CMv1 and Simple DVT Module (SDVTM), and the responsibilities currently performed by LNOSG (Lido Node Operator Sub-Governance Group), which will be deprecated. The CMC will operate via a multisig and handle routine operational tasks (e.g., penalties, parameter updates, registry management, and operator administration) within defined on-chain permissions. DAO oversight is preserved through Snapshot votes for high-impact decisions (such as Node Operator onboarding) and the Easy Track objection mechanism for routine actions.

Background

The upcoming Curated Module v2 (CMv2) introduces new governance capabilities, enabling a shift toward a structured, committee-driven operational model with delegated on-chain permissions (see CMv2 LIP). This enables more granular governance-based operational processes, resulting in a more advanced but operationally demanding model with recurring actions related to penalties, parameter updates, registry management, and operator administration.

The Lido Node Operator Sub-Governance Group (LNOSG) has historically provided technical expertise and decentralized input on Node Operator (NO) due diligence, selection, onboarding, and broader oversight of the operator set for the Curated Module v1 (CMv1) and Simple DVT Module (SDVTM). However, an advisory body like LNOSG is not well-suited to take on arising routine operational responsibilities and operate within the model introduced by CMv2.

This proposal is put forward ahead of the DAO Snapshot voting on CMv2, in order to ensure that the governance framework is in place to support CMv2 from day one and covers the CMv1→CMv2 transition period.

Curated Module Committee (CMC)

It is proposed to establish the CMC as a specialized body designed to facilitate the day-to-day technical and operational health of Lido’s Curated Modules (namely, CMv1, CMv2, and SDVTM). The CMC is designed to act as a fast-response unit that handles routine administrative tasks without requiring full DAO votes for every minor change, while preserving the explicit DAO’s oversight for major changes (such as NO onboarding) through Snapshot votes.

The Committee's composition

The CMC will primarily consist of contributors to the Lido protocol from the Node Operator Mechanism (NOM) and technical workstreams, bringing a diverse range of expertise to the Committee:

• Will Shannon - Head of NOM
• Aleksandra Gusakova - Lido Core Product Lead
• Dmitry Gusakov - Staking Modules Tech Lead
• Sven Brekelmans - Senior NOM Analyst
• Sabrina Hsu - Senior NOM Analyst
• Alexander Movsunov - VROOM Lead

In addition, three existing LNOSG members volunteered to join to help transition their expertise:

• Edouard Lavidalle - Head of Staking at Stakin by The Tie
• Ignacio Iglesias - CTO & Co-founder of Stakely
• George Bunea - CEO of Syncnode

The CMC is proposed to operate via a dedicated multisig wallet with a 5/9 signing quorum to ensure broad consensus before any action is executed.

Reporting and Communication

Any action initiated by the CMC, including the creation of Easy Track motions related to penalties, parameter changes, or operator management, will be publicly shared on the Research Forum.

NOs participating in CMv2 will be able to contact the CMC with questions, issues, or escalation requests in a dedicated thread on the Research Forum.

The Committee’s Lifespan

The CMC is proposed to exist until:

• The Curated Modules are sunset or materially changed, which supersedes CMC’s role.
• The DAO decides to modify or dismantle the CMC through a DAO governance vote, including updating its composition or altering/revoking its roles in CMv2 on-chain.

Proposed Operational Model

Under this mandate, CMC is authorized to perform certain operations directly via on-chain permissions, while any critical or sensitive actions remain subject to an optimistic on-chain governance mechanism (Easy Track).

1. Curated Modules Standard Operations

In CMv2, CMC will be responsible for the following:

• Report and revoke general delayed penalties (locking/unlocking the NO bond), with penalty settlement overseen by the DAO (Easy Track motion)
• Set general delayed penalty parameters, for example, minPenaltyAmount (direct on-chain action)
• Report slashing penalties, including the amount of losses for validators proven as slashed (Easy Track motion)
• Update NO names and descriptions (direct on-chain action)
• Pause creation of new NOs for a specific NO Type (direct on-chain action)
• Assign Node Operator Types during NO onboarding, create Node Operator Groups, and define sub-operator shares within the group (Easy Track motion)

During the CMv1→CMv2 transition period, the CMC will also be responsible for assigning and reassigning Node Operator Types for CMv1.

2. Curated Module v2 Operator Set Expansion

NO onboarding is treated as a special case due to its long-term impact on the protocol.

The expansion of the NO set is conducted through public onboarding rounds, under a framework defined by the CMC. The framework determines the onboarding process, selection criteria, and the number of operators to be onboarded in each round. Such onboarding rounds may be initiated either by CMC in coordination with the NOM workstream or via a Snapshot vote. In both cases:

1. The CMC conducts a full technical and operational review of NO applicants, following similar due diligence undertaken by the LNOSG, to be described in the Node Operator portal
2. The CMC submits an onboarding Snapshot proposal for a selected shortlist of participants
3. Upon DAO approval, CMC whitelists approved participants’ addresses via Easy Track for NO creation

Applications for onboarding new NOs may also be submitted through standalone Snapshot votes outside of public onboarding rounds, with the CMC review process applying in those cases as well.

3. Simple DVT Module Operations

Following the deprecation of the LNOSG, for the SDVTM, CMC will be responsible for:

• Reviewing and evaluating all NO applications and DVT cluster configurations
• Coordinating with DVT providers to ensure the technical health and security of the module
• Coordinating with the SDVTM Committee for changes to the SDVTM NO registry (operational and Easy Track execution would continue to be handled by the SDVTM Committee)

4. Node Operator Oversight, Evaluation, and Advisory Functions

CMC will also assume advisory functions historically performed by the LNOSG:

• Advising on offboarding decisions, including identifying underperforming operators or operators involved in misconduct and providing recommendations to the DAO on appropriate actions. CMC does not have on-chain permissions to remove NOs from NO sets or impose limits that would lead to their removal.
• Evaluating whether NOs, following mergers, acquisitions, or other changes in their operational structure, continue to meet technical, operational, and decentralization standards, and providing recommendations to the DAO on whether such operators should continue participation in the NO set under existing terms, be subject to updated terms, or be considered for offboarding.

Next Steps

If the community supports the proposal, the following steps will be taken:

• The Curated Module Committee (CMC) will be formally established with the proposed governance framework for CMv1, CMv2, and SDVTM.
• The responsibilities currently performed by LNOSG will be absorbed by CMC; and LNOSG will be deprecated accordingly.
• CMC will be granted the required on-chain roles and permissions to operate CMv2 under the proposed mandate as part of the CMv2 release via on-chain vote.