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Do stakers represent users?

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Do stakers represent users? Comment Search Duplicate Open Notion Do stakers represent users? In his post “The risks of LSD”, Danny Ryan identifies control of the NO set (who goes in, who goes out) as the biggest risk from large liquid staking protocols like Lido. After discarding the two most popular options today, changing the set via governance (Lido, Alluvial) or economic selection (Rocketpool), he looks at a third option: a dual-governance, where stETH holders can veto proposals and backstop the safety of the protocol. In this chapter, he argues that bringing stakers into governance would not add meaningful security because there are many more users of Ethereum than stakers, and they are not the same group. In other words, the stakers don’t represent Ethereum or its users, and hence are not sufficiently incentivized to protect them. This is a bit of a red herring, and I will explain why. First, the observation “users and block producers are not the same group” is completely orthog

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