DAO Take Rate Surges 23% to Record High in Q1 2026

**Lido has achieved a perfect 12/12 score** on the Aragon Token Ownership Index, demonstrating strong tokenholder governance rights. **Key developments:** - Tokenholders maintain exclusive control over treasury allocations - LDO Accumulation Program underway with 471 stETH deployed in Batch #1 (closes May 29) - Automated buyback proposal passed via Snapshot vote - Onchain implementation scheduled for July The Token Ownership Index measures how much control tokenholders actually have over protocol decisions and assets, with scores based on verifiable onchain rights rather than promises. [Read the announcement](https://x.com/LidoFinance/status/2057119256928542748)

**KelpDAO Exploit Resolution Complete** A LayerZero bridge exploit left rsETH underbacked by over 100,000 ETH, directly impacting Lido's EarnETH vault with approximately $20M in rsETH exposure. **Community Response** - The 'DeFi United' initiative successfully raised 132,000 ETH to address the rsETH shortfall - Lido DAO contributed 2,500 stETH to the recovery effort - First-loss protection mechanism activated, burning 144 ETH to fully cover affected users **Current Status** - EarnETH vault was frozen for 27 days during the resolution process - Operations have now resumed normally - All EarnETH users were made whole through the protection mechanism The incident demonstrated DeFi's capacity for coordinated crisis response, with multiple protocols collaborating to minimize user impact.

**Market Status** ETH has remained flat at $2,120 for several months with no significant price movement. **Staking Dynamics** - Total ETH staked increased faster than anticipated - Growth primarily driven by institutional players Grayscale and BitMine - Entry queue extended to over 50 days since late January - 'APR Maxi' participants dropped from 16% to 10% after KelpDAO incident **Network Activity** Last month saw 84,300 ETH issued versus only 4,100 burned. Despite renewed staking interest with 3.8M ETH queued, L2 dominance continues preventing Ethereum's return to deflationary status.

Lido Foundation delivered its May 2026 tokenholder update covering several critical areas: **Financial Performance** - Q1 2026 financial results and profitability metrics disclosed - Token buyback program progress detailed **Security & Operations** - Assessment of KelpDAO exploit impact on Lido ecosystem - Updated security stance and protective measures **Strategic Initiatives** - Current market conditions analysis - Tokenholder alignment efforts and next steps outlined The update follows previous quarterly reports and continues Lido's transparency efforts with stakeholders.