# Lido approves conditional CSM expansion and a lower key-removal charge

> The approval authorized a future reduction in the safety charge applied when queued validator keys are removed and created a conditional path to allocate a larger share of Lido stake to CSM.

- URL: https://riadefi.com/on-chain/2025-04-21-lido-csm-stake-share-3pct-key-removal-0-02-approval/
- Type: Control change
- Stage: Approved, not executed
- Evidence: confirmed
- Materiality: material
- Event date: 2025-04-21
- Version: 1, published 2026-08-22 (first published 2026-08-22)
- Follow-up: 2025-05-24
- Advisor-relevant: yes
- Affects: Lido (protocol)

## What happened

Lido's Snapshot approved reducing the Community Staking Module's keyRemovalCharge from 0.05 ETH to 0.02 ETH and conditionally increasing its stakeShareLimit from 2% to 3%.

## What changed

The approval authorized a future reduction in the safety charge applied when queued validator keys are removed and created a conditional path to allocate a larger share of Lido stake to CSM.

## What did not change

Neither parameter changed on-chain in April. The stake-share increase remained conditional on other module and node-operator milestones or a later CSM v2 release.

## Confirmed

- The Snapshot passed on April 21 with 63.9 million LDO for and one LDO against.
- The approved keyRemovalCharge target was 0.02 ETH, based on a conservative 20 Gwei queue-cleanup cost estimate.
- The approved stakeShareLimit target was 3%, up from 2%.
- The stake-share proposal also called for a 3.75% priorityExitShareThreshold and specified conditions involving SimpleDVT and Pier Two.

## Still open

- The on-chain vote and execution transactions for each parameter.
- When or whether the stated conditions for the 3% stake-share limit were met.
- Final parameter values if execution was bundled with later CSM or Pectra changes.
- The operational effect on queue behavior, node-operator concentration, exits, and module allocation.

## What it means for an advisor

- Review the Lido memo's CSM allocation, queue, penalty, and node-operator concentration assumptions.
- Verify executed parameter state and satisfaction of the conditional expansion criteria before treating either change as operative.
- Continue assessing CSM as a distinct staking-module dependency; governance approval does not establish lower risk.

## Sources

1. [Proposal: Update keyRemovalCharge parameter in CSM](https://research.lido.fi/t/community-staking-module/5917/104) · Lido Governance Forum · 2025-03-31
2. [Proposal: CSM stake share limit increase](https://research.lido.fi/t/community-staking-module/5917/105) · Lido Governance Forum · 2025-04-12
3. [CSM parameter-adjustment Snapshot result](https://research.lido.fi/t/community-staking-module/5917/111) · Lido Governance Forum · 2025-04-21


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.