The Lido Decentralized Autonomous Organization (DAO) has proposed a new system of tiered rewards to incentivize Ethereum (ETH) stakers to partner with other Web3 communities, which could drive further capital into the Ethereum liquid staking protocol. The proposal will require potential participants to drive 2,500 ETH to Lido over 12-24 months and will give the Lido DAO a mandate to encourage sustainable growth while discouraging cycle staking. If passed, those staking up to 50,000 ETH will receive 30% of the additional rewards, while the largest stakers committing 700,000 ETH or more will receive half of the DAO’s rewards share.
The voting period is still underway, but many DAO members are supporting the changes. These tiered rewards are expected to encourage more participation in the Ethereum network and ultimately drive its growth and development.
In other news, crypto exchange Coinbase has won a temporary stoppage of a class action lawsuit as the US Supreme Court supported Coinbase’s efforts to force the matter into arbitration. While the case’s outcome has no direct impact on the crypto industry beyond Coinbase, the decision marks the first time a crypto company has appeared before the US high court and could be significant for suits against the firm.
Meanwhile, Ethereum’s exchange balances have reached an all-time low, indicating bullish pressure building around Ether. Technical charts suggest that the asset could rebound to $3,000 if buyers push past $1,900-$2,000 resistance. Additionally, ETH supply locked in staking contracts has surged significantly since April’s Shapella upgrade, with over 23 million ETH deposited in staking contracts representing 19.1% of its total supply. Increased withdrawals from exchanges and deposits in smart contracts are positive for ETH’s price and reduce its liquid supply.
On-chain movements and market indicators give the upside a higher chance over a short-to-medium-term bearish trend, but Bitcoin’s price action and its buyers’ ability to hold the $30,000 level will also play a crucial role in maintaining Ether’s bullish momentum. As always, investors should remain vigilant and keep an eye on market developments to make informed decisions.