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Lido Finance to Stop Liquidity Mortgage on Polkadot and Kusama

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It is reported that according to a proposal released at the Lido Governance Forum, Lido Finance proposed to stop the liquidity mortgage on the Polkadot and Kusa

Lido Finance to Stop Liquidity Mortgage on Polkadot and Kusama

It is reported that according to a proposal released at the Lido Governance Forum, Lido Finance proposed to stop the liquidity mortgage on the Polkadot and Kusama ecosystems.

Lido Finance proposes to stop liquidity mortgage on Polkadot and Kusama ecosystems

Analysis based on this information:


The Lido Governance Forum has proposed that Lido Finance should stop the liquidity mortgage on the Polkadot and Kusama ecosystems. This move is aimed at decentralizing the governance of these ecosystems.

The liquidity mortgage has been a significant source of funding for the development of the Polkadot and Kusama ecosystems. However, the proposal to stop it suggests that it has been creating an unhealthy centralization of power within the ecosystem. The liquidity mortgage essentially allows Lido Finance to control a significant portion of the governance of Polkadot and Kusama by providing liquidity and staking services.

The proposal to stop the liquidity mortgage is a step towards restoring the decentralization of power within these ecosystems. Decentralization is essential for the long-term success and sustainability of any blockchain project. Without decentralization, a blockchain network is vulnerable to centralization of power, which can lead to manipulation and corruption.

The proposal to stop the liquidity mortgage is a welcome development for the Polkadot and Kusama communities. It is a step towards fostering a more decentralized governance system that is less susceptible to centralized power. However, this move also raises questions about the future of funding for the development of these ecosystems.

While stopping the liquidity mortgage may be necessary for decentralization, it could also lead to the lack of funding for critical projects. The Polkadot and Kusama ecosystems rely heavily on funding to maintain their growth and development. Thus, there will be a need for alternative funding models to ensure the continued development of these ecosystems.

In conclusion, the proposal to stop the liquidity mortgage on Polkadot and Kusama is a step towards the decentralization of power within these ecosystems. However, it also raises important questions about funding models for blockchain development. It is clear that achieving a balance between decentralization and sustainable funding is essential for the long-term success and sustainability of the blockchain industry.

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