Lido Passes Dual Governance Proposal

Hi! In today’s edition:

• 🗳️ Lido stakers gain veto power and rage-quit rights

• 👁️ Vitalik warns Worldcoin’s IDs threaten privacy

• ⚡ BNB Chain to get faster with Maxwell hardfork

• 🧨 LeverFi quietly mints 13.7B tokens post-Binance delist

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Lido DAO Enables Dual Governance, stETH Holders Can Trigger ‘Rage-Quit’ Mode

Lido DAO, the governing body of Ethereum’s largest liquid staking protocol, passed a proposal to enable a dual governance system.

The proposal, which passed the main phase with votes almost unanimously in favor, grants ETH stakers – those holding stETH tokens – veto power over governance decisions. It will take effect unless participating LDO token holders either vote “no” or reverse their earlier “yes” votes during the objection phase, which ends at 10 a.m. ET on Monday.

Under the new system, stETH holders can now object to DAO proposals by depositing stETH into an escrow contract. If at least 1% of the total staked ETH in Lido is deposited, the proposal will be delayed for an initial five days.

If the amount of stETH locked in dissent reaches 10% of the total staked ETH, the proposal will be frozen and the protocol will enter a “rage-quit” state, preventing new proposals from executing until the issue is resolved.

The mechanism is designed to protect stakers from decisions by LDO token holders that could negatively impact them or the Ethereum network, creating a system of checks and balances.

“One of the most well thought-out and complex governance designs in the history of Ethereum, and all onchain minimizing trust,” wrote kadmil, a member of the Lido community on the protocol’s governance forum.

“By implementing dual governance, Lido has effectively solved the agent–principal problem - a major step forward and a great example of regulating code through technology,” said Konstantin Lomashuk, co-founder of Lido on X.

Join us live today as Laura interviews Hasu and Vasiliy Shapovalov on the significance of this proposal passing.

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Ethereum’s Vitalik Buterin Warns Worldcoin’s Biometric IDs Threaten Privacy

Ethereum co-founder Vitalik Buterin warned that Sam Altman’s World digital ID project poses a significant threat to online pseudonymity and privacy.

In a blog published over the weekend, Buterin argued that under a strict one-person-one-ID system, even if ZK-wrapped, users may be compelled to conduct all online actions under a single, traceable identity.

According to him, this could undermine the flexibility and protection offered by pseudonyms, which are especially important for privacy, whistleblowing, and safety in high-risk environments.

He also noted that centralized ID systems could enable greater surveillance by authorities or corporations, especially if the system becomes dominant or is compromised.

World ID promises to distinguish humans from AI online using a “proof of personhood” system based on biometric iris scans.

It also aims to enable universal basic income (UBI) by distributing its native token WLD to users.

“Worldcoin does this systematically: anyone with a World ID gets a small but regular ongoing supply of WLD tokens,” said Buterin.

“Personally, I do not expect such tokens to be worth anywhere close to enough to pay for a person's subsistence.”

Join us live today at 4:30 pm E.T. to discuss the latest in crypto and macro!

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BNB Smart Chain to See Sub-Second Block Times After Maxwell Hardfork

BNB developers announced the Maxwell Hardfork, scheduled to go live later this week, which introduces a major performance upgrade to the BNB Smart Chain (BSC), reducing block times from 1.5 seconds to 0.75 seconds. 

This effectively doubles the network’s block production speed, aiming to enhance transaction throughput, network responsiveness, and validator synchronization, bringing BSC closer in speed to high-performance chains like Solana.

Validators will soon be able to propose blocks for 16 consecutive turns. up from 8, and the epoch length will be extended from 500 to 1,000 blocks, stabilizing performance under the accelerated cadence.

Block propagation among validators will be targeted at 400 milliseconds, and the per-block gas limit will be halved from 70 million to 35 million to prevent network congestion and excessive state growth.

BNB developers said that transactions will now feel “near instant,” while noting that some maximal extractable value (MEV) strategies may no longer be viable under the tighter block window. 

LeverFi Mints 13.7B New Tokens After Binance Delisting Announcement 

Decentralized leveraged trading and lending platform LeverFi has minted 13.7 billion new LEVER tokens, according to onchain data, but the team behind the protocol has yet to offer an explanation.

The quiet minting event has raised concerns within the crypto community, especially given its timing so close to a delisting decision from Binance. The major crypto exchange said it plans to delist LEVER on July 4.

Some of the newly minted tokens have already been moved to crypto exchanges Bybit and MEXC.

LEVER has dropped 14% over the last 24 hours and was trading at around $0.0003186 as of 7 pm ET on Sunday. The token is trading 94% below its all-time high of $0.0053 three years ago.

• ⚖️ Ripple ended its cross-appeal against the SEC, opting to pay $125 million and close the case, a move seen as clearing regulatory roadblocks for potential XRP ETFs now pending approval.

• 🗣️ Trump claimed he was active in Bitcoin before announcing his 2024 campaign, pushing back on criticism that his crypto involvement was politically motivated.

• 🛠️ Nobitex, Iran’s largest crypto exchange, began restoring limited services weeks after a $90 million breach by a pro-Israel hacker group that published source code and destroyed stolen funds, while deposit addresses were replaced due to wallet migration.

• 📢 Binance has come under fire in Kenya after a lobby group it allegedly sponsors secured a seat on the country’s proposed crypto regulatory board, prompting fears among local startups that new rules could unfairly favor the global exchange.

• 💣 Over $2.1 billion in crypto was stolen in the first half of 2025, with TRM Labs attributing 80% of that to infrastructure attacks like private key theft and front-end exploits, many linked to state actors including North Korea.

• 📦 Ledger ended software updates for its original Nano S device due to memory limitations that prevent modern security upgrades, urging users to upgrade hardware while reassuring them their keys remain portable across compatible wallets.

• 🔥 Resupply proposed burning 6 million reUSD from its insurance pool to address bad debt left by a $10 million exploit that manipulated solvency checks through an oracle edge case.

• 🇰🇷⏸️ South Korea’s central bank paused its digital currency trials after spending $26 million on a pilot with seven banks, citing growing political and market momentum behind locally-issued won-based stablecoins.

• ⛓️ To mark Ethereum’s 10th birthday, developers launched a $2.50-per-entry encrypted onchain “time capsule” for storing user messages and art until the chain’s 11th anniversary, using threshold cryptography for delayed reveal.

• 🧾 Midas, a tokenization firm, launched mF-ONE, a blockchain-native investment product tied to private credit strategies from Fasanara, allowing qualified users to borrow USDC from Morpho’s liquidity pools while maintaining portfolio exposure.

• 📦 REX-Osprey received clearance from the SEC to launch U.S.-based ETFs that offer both Solana and Ethereum staking rewards, marking the first time such yield-bearing funds will be available on public markets.

• 🔄 Robinhood added micro futures for XRP and Solana to its platform, expanding its low-barrier crypto derivatives lineup following its acquisition of Bitstamp and plans to absorb WonderFi.

• 🔐 Zama raised $57 million in a series B round to scale its encrypted smart contract protocol and became the first unicorn in the fully homomorphic encryption space, with a testnet launching in July for confidential onchain finance and identity.

• 💸 OpenRouter, an LLM routing startup founded by ex-OpenSea CTO Alex Atallah, secured $40 million from a16z, Menlo, and Sequoia to expand its AI aggregator platform, now used by over a million developers and routing $100 million in annual inference spend.

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