[DRAFT][GF: Phase 1 Proposal] Lido

From an Ethereum public good perspective I would suggest that the last thing we want to do is add our funds to incentivize wstETH. Lido already controls almost enough of the total number validators to halt block production on mainnet by preventing the 2/3 attestation requirement to be reached.

While I don’t think that you are an active attacker of the network or would have any intention to act in a hostile way, the fact that any entity could do so damages the legitimacy of the network.

If you decide to self-limit in some way to ensure there is a hard line to prevent the 33% share being crossed then of course feel free to come back and make a proposal. Until then this is the hardest no possible from me.

EDIT - or removing the block production from Lido: Ethereum MEV Extraction and Rewards - Discussion & Policy Groundwork - Department of Decentralisation - Lido Governance

Blocks would only be accepted from the open block market via the chosen infrastructure (e.g. MEV-boost) or from the normal block-building process via the public mempool (fallback mode in case MEV-boost is not functioning properly), blocks should not be built in-house by Lido or by Lido Node Operators (NOs are free to build their own blocks for blocks proposed by other validators that they run, but not for Lido validators)

The safety and legitimacy of Ethereum mainnet is more important than TVL growth and adoption of Optimism, as all of our security and legitimacy is inherited from the L1. At the moment your project is a threat to that, hopefully this will change in the future.