# \[DRAFT\]\[GF: Phase 1 Proposal\] Lido **URL:** \ **Category:** Governance Fund: Phase 1\ **Tags:** cycle-6\ **Created:** [June 23, 2022, 2:49pm UTC](https://gov.optimism.io/t/draft-gf-phase-1-proposal-lido/2752 "2022-06-23T14:49:24Z")\ **Posts on this page:** 1\ **Showing post:** 12
**Author:** ![carvas](https://dub1.discourse-cdn.com/bc41dd/user_avatar/gov.optimism.io/carvas/32/511_2.png) [@carvas](https://gov.optimism.io/u/carvas)\ **Post date:** [June 26, 2022, 6:24pm UTC](https://gov.optimism.io/t/draft-gf-phase-1-proposal-lido/2752/12 "2022-06-26T18:24:05Z")
Appreciate your opinions and there is value in having all views present. However, this last post is an inconsequential point. The Lido DAO’s budgets for incentives and rewards programs have been upwards of 4.5M LDO _monthly_ (e.g.: [april](https://research.lido.fi/t/rewards-april-22-budget-q1-update/1955), [june](https://research.lido.fi/t/rewards-june-22-budget/2295)), with overwhelming majority geared towards stETH. Depending on markets and price, this amounts to between $3M and $22M in incentives monthly. The OP allocation for LM, at current prices, would be between $500k and $600k, to be distributed _over many months_ (proposed 6). As such, if we take the 6 months proposed and these current prices, it could represent an increase anywhere between _3.6% and 0.5% to the current incentives program._ I don’t think it is fair to argue that such a small increase in overall incentives will single-handedly “increase the demand and restart the inflows of ether into their pool, hastening their rise past the 33% line” (and that worry itself has, in turn, been clarified by Izzy above). * * * Again, the purpose of this GF proposal is to ultimately help Optimism users, protocols and DAOs have good and easy access to the most lindy and liquid ETH liquid staked derivative, strengthening OP’s DeFi ecosystem. --- _[View the full topic](https://gov.optimism.io/t/draft-gf-phase-1-proposal-lido/2752)._