Lido Alliance BORG – Amendment of Bylaws to Enable GOOSE-3 Execution

TL;DR

• GOOSE-3 proposes the horizontal expansion of the Lido DAO into new products and business lines.
• The current bylaws of Lido Alliance BORG are narrowly drafted and restrict its purpose to the Lido Alliance Program.
• To allow for the execution of GOOSE-3, we propose expanding Lido Alliance BORG’s permitted purposes to enable it to host the new initiatives, products and activities to be undertaken pursuant to GOOSE-3.
• This change requires the favourable vote of the LDO token holders.
• If approved, and subject to GOOSE-3 also being approved, the Lido Alliance BORG’s directors will pass a board resolution implementing the approved changes.

Motivation

GOOSE-3 outlines a strategic vision for Lido DAO in the next three years, including a horizontal expansion into new product verticals intended to diversify Lido DAO’s revenue base. Delivering this strategy requires a legal and operational structure capable of housing these new products and business lines under Lido DAO oversight.

Today, Lido Alliance BORG, one of the Cayman Island foundation companies overseen by Lido DAO, is limited by its current bylaws. Its permitted purpose is narrowly focused on administering the Lido Alliance Program. As a result, it cannot host the new initiatives, products and activities contemplated in GOOSE-3 due to its limited activity as a result of the current mandate.

With Lido Ecosystem Foundation focused on enabling ecosystem growth and driving institutional adoption of the Lido protocol and stETH and Lido Labs Foundation focused on open-source software development, research and the expansion of the node operator community, Lido Alliance BORG is the entity best positioned to undertake the horizontal expansion contemplated under GOOSE-3. It thus represents the most appropriate vehicle to host the new products, business lines, and activities, provided that its bylaws are amended accordingly.

Accordingly, to ensure the appropriate corporate infrastructure is in place to execute Lido DAO’s roadmap without incurring in the cost and complexity of establishing new DAO-adjacent entities, we propose expanding Lido Alliance BORG’s corporate purposes so that it may serve as the entity responsible for housing, developing and operating the new products and growth initiatives arising from the horizontal expansion strategy contemplated in GOOSE-3.

For this, only Schedule 1.2.1 of its bylaws, which sets out some of its purposes, needs to be amended. No other changes are required.

Pursuant to Section 5.2 of Lido Alliance BORG’s bylaws, any amendment to the Purposes (as defined therein) that “could reasonably be expected to negatively modify, limit, eliminate, waive, or otherwise adversely affect any power, right, obligation, liability, perquisite, or interest of the Community” requires LDO token holders’ approval via a Snapshot vote.

While we do not believe the proposed amendment adversely affects the Community, the narrow scope of the purposes approved by Lido DAO in relation to Lido Alliance BORG means that this change would place the entity on a materially different trajectory. Accordingly, in the interest of maintaining full transparency to Lido DAO, we are seeking explicit approval from LDO token holders for this amendment.

Implementation

The only proposed modification to Lido Alliance BORG’s bylaws is in Schedule 1.2.1 (Certain Purposes), as follows:

• To develop and incentivize the growth of the Lido protocol, decentralized network and ecosystem.
• To develop and execute initiatives, products and activities aimed at expanding the Lido DAO treasury’s revenue and diversifying its revenue streams by broadening Lido protocol’s product portfolio and overall product offering.
• To do all such things as in the opinion of the Directors are or may be ancillary, incidental or conducive to the above.

All other provisions of the bylaws will remain unchanged.

Subject to GOOSE-3 and this proposal being approved by the LDO token holders, the directors of Lido Alliance BORG will pass a board resolution adopting the changes to Schedule 1.2.1 of the bylaws.

Voting options

By voting “For”, you indicate support for the proposed change to Schedule 1.2.1 of the bylaws of Lido Alliance BORG as described herein, subject to GOOSE-3 also being approved.

By voting “Against”, you indicate you do not support the proposed change to Schedule 1.2.1 of the bylaws of Lido Alliance BORG as described herein.