What is this about?

The discussion revolves around a proposal introduced by Kyros_LOP¹ to stake MATIC tokens, which are accumulated from protocol fees, back into the Lido on Polygon protocol on a quarterly basis. The primary goals of this proposal are to increase the market cap of stMATIC, secure the Polygon network further, and bolster trust within the community. The proposal is designed to reinvest the MATIC rewards into stMATIC, with an expected additional annual yield of 4.43% in MATIC rewards¹. It was clarified that this would involve staking all MATIC tokens from the treasury wallets every quarter².

How is the community reacting?

The community has shown strong support for the proposal. Dgusakov highlighted the economic and narrative benefits of the proposal³, while Steakhouse referred to it as a "no brainer" and suggested possible execution methods⁴. Marin raised a question about simplifying the process to avoid intensive on-chain voting⁶, to which Kadmil responded that while it's technically possible, the DAO Ops team is currently too busy to design and implement such a process⁷. Marcbcs indicated that the proposal has been documented and added to the TMC tracking sheet, drawing a parallel to a similar action with ETH, and inquired about the DAO Ops team's capacity to handle this in 2024⁸.

Why this is positive?

• The proposal is expected to generate an additional 4.43% in MATIC rewards annually, which would benefit the Lido DAO financially¹.
• It aims to increase the market cap of stMATIC and secure the Polygon network, which could lead to increased trust and a stronger community¹.
• The community's strong support suggests a high likelihood of consensus and successful implementation^3,4.

Why this is negative?

We have not been able to determine whether this will be negative.

Next actions

The proposal has been added to the TMC tracking sheet for further documentation and tracking⁸. There is a possibility that the DAO Ops team might be able to take on the task in 2024⁸. However, there is no immediate next action such as a vote or snapshot mentioned in the provided summaries.