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Comparisons

Governance Rights in Restaking vs Governance in Primary Staking

A technical analysis for CTOs and protocol architects comparing governance power, delegation mechanisms, and risk exposure when staking natively versus restaking through protocols like EigenLayer.
Chainscore © 2026
introduction
THE ANALYSIS

Introduction: The Governance Power Dilemma

A data-driven comparison of governance rights in restaking versus primary staking, focusing on influence, risk, and protocol alignment.

Primary Staking excels at providing direct, protocol-specific governance power because stakers vote directly on the network they secure. For example, an Ethereum validator with 32 ETH can participate in Ethereum Improvement Proposals (EIPs) via the consensus layer, wielding influence proportional to their stake. This creates a tight feedback loop where securing the network grants a direct say in its evolution, as seen in major upgrades like Dencun.

Restaking takes a different approach by decoupling security from governance. Platforms like EigenLayer allow staked ETH to be reused to secure other protocols (AVSs), but this delegated security does not automatically confer governance rights in those consumer chains. This results in a trade-off: you gain yield diversification and ecosystem influence, but your direct voting power is often siloed to the restaking platform's governance token (e.g., EIGEN) rather than the underlying protocols you secure.

The key trade-off: If your priority is maximizing direct, sovereign control over a specific core protocol like Ethereum or Solana, choose Primary Staking. If you prioritize influence across a broader ecosystem and are willing to delegate specific governance rights for enhanced yield and security utility, choose Restaking. The decision hinges on whether you value depth of control in one network or breadth of influence across many.

tldr-summary
Governance Rights in Restaking vs Primary Staking

TL;DR: Core Governance Trade-offs

Key strengths and trade-offs at a glance. Primary staking governance is foundational but limited; restaking governance is composable but introduces new risks.

01

Primary Staking: Protocol Sovereignty

Direct, non-transferable voting power: Governance rights are tied to staked native tokens (e.g., ETH for Ethereum, SOL for Solana). This ensures voters have direct skin-in-the-game for the underlying protocol's security and upgrades. This matters for protocol architects who require stable, aligned governance for core layer-1 decisions.

1:1
Vote-to-Stake Ratio
02

Primary Staking: Predictable Security

Clear slashing conditions and accountability: Governance actions and validator penalties are defined within a single protocol's consensus rules. This creates a predictable security model for CTOs managing institutional validators, as the risk surface is contained and auditable (e.g., Ethereum's slashing for double-signing).

Defined
Risk Boundary
03

Restaking: Governance Leverage & Yield

Amplified influence across multiple protocols: By restaking assets (e.g., via EigenLayer), a single stake can secure and vote on dozens of Actively Validated Services (AVSs) like oracles (e.g., Hyperlane, AltLayer) and DA layers. This matters for capital-efficient protocols seeking to bootstrap security and governance participation simultaneously.

10x+
Protocols Secured
04

Restaking: Composability Risk

Correlated slashing and governance attacks: A governance decision or slashing event in one AVS can cascade to others sharing the same restaked capital. This introduces systemic risk, making it critical for VPs of Engineering to rigorously assess the security and governance quality of every AVS in their portfolio.

Correlated
Failure Risk
RESTAKING VS PRIMARY STAKING

Governance Rights: Head-to-Head Feature Matrix

Direct comparison of governance rights, influence, and economic alignment for protocol decision-making.

Governance FeatureRestaking (e.g., EigenLayer)Primary Staking (e.g., Native ETH)

Direct Protocol Voting Rights

Vote-escrowed (ve) Token Model

Governance Yield Multiplier

Up to 50% APR boost

0% (No direct link)

Slashing for Governance Failure

Delegation to Professional Operators

Average Voting Power Concentration

~15-30% per major operator

~1-5% per entity

Cross-Protocol Influence

pros-cons-a
Governance Rights in Restaking vs Governance in Primary Staking

Native (Primary) Staking: Governance Pros and Cons

A direct comparison of governance rights, power, and trade-offs between securing a base layer and participating in a restaking ecosystem.

01

Primary Staking: Direct Protocol Control

Direct voting power on core parameters: Stakers vote on protocol upgrades (e.g., Ethereum EIPs, Cosmos governance proposals). This matters for protocol architects who need to influence the foundational rules of the network they build on. Example: Lido DAO's stETH holders govern the largest liquid staking protocol on Ethereum.

Direct
Voting Mechanism
02

Primary Staking: Clear Value Alignment

Incentives are singularly focused on the security and success of the native chain. There is no dilution of attention or capital. This matters for CTOs prioritizing maximum security for their treasury or protocol holdings, as the staker's reward is perfectly correlated with the chain's health.

03

Restaking: Governance Leverage & Diversification

Amplified governance influence across multiple protocols by reusing stake. A single ETH restaked via EigenLayer can secure and grant voting rights in AVSs like EigenDA, Lagrange, and more. This matters for VPs of Engineering building cross-chain applications who need governance sway in multiple infrastructure layers simultaneously.

Multi-Protocol
Governance Scope
04

Restaking: Complex Risk & Dilution

Governance attention and slashing risks are fragmented. Voting on numerous AVS proposals creates operational overhead. More critically, poor governance in one AVS can lead to slashing that impacts all restaked positions. This matters for risk-averse institutions where capital preservation is paramount, as rewards come with compounded governance and slashing risks.

pros-cons-b
Governance Rights in Restaking vs Primary Staking

Restaking (EigenLayer): Governance Pros and Cons

A technical breakdown of governance trade-offs when securing multiple protocols via restaking versus a single L1/L2. Key metrics and protocol examples illustrate the decision matrix.

01

Pro: Amplified Influence & Portfolio Governance

Single stake, multiple votes: By restaking ETH via EigenLayer, you can delegate governance rights to multiple Actively Validated Services (AVSs) like EigenDA, Espresso, and Lagrange. This creates a governance portfolio, allowing influence over data availability, sequencing, and interoperability layers from one capital position. This matters for large stakers and DAOs seeking broad ecosystem influence without fragmenting capital.

40+
AVSs (Q2 2024)
02

Pro: Economic Alignment Over Speculation

Skin-in-the-game governance: Restakers' votes are backed by slashed capital, creating stronger incentive alignment than token-weighted voting common in primary staking (e.g., Uniswap, Compound). This model, pioneered by EigenLayer's cryptoeconomic security, matters for protocols prioritizing security (e.g., oracle networks, bridges) where governance failure leads to direct financial loss for voters.

03

Con: Diluted Focus & Responsibility

Governance overload risk: A restaker securing 10+ AVSs faces complex, competing governance proposals, potentially reducing voting diligence per protocol. This contrasts with primary staking on Ethereum or Cosmos, where governance is focused on a single chain's upgrades (e.g., EIPs, Cosmos Hub proposals). This matters for operators who value deep, informed participation over broad but shallow influence.

1 vs 10+
Focused vs. Fragmented Governance
04

Con: Protocol-Dependent Rights (No Standard)

Inconsistent power structures: Governance rights are defined per AVS, not by EigenLayer. Some may offer direct voting (e.g., EigenDA's Data Availability Committee), others indirect delegation. This fragmentation contrasts with the standardized governance of primary staking on chains like Solana (real-time voting) or Polygon (PIPs). This matters for developers seeking predictable governance integration for their dApps.

CHOOSE YOUR PRIORITY

Decision Framework: When to Choose Which Model

Governance in Primary Staking for Architects

Verdict: Choose for foundational protocol control. Strengths: Direct, sovereign control over the core protocol's upgrade path (e.g., Ethereum's EIPs, Cosmos Hub's Prop 82). Governance tokens like UNI or AAVE grant voting power on treasury management, fee switches, and core parameter changes. This model is ideal for protocols where security and long-term roadmap alignment are paramount. The attack surface is contained within the primary chain's consensus.

Governance Rights in Restaking for Architects

Verdict: Choose for building cross-chain security services. Strengths: Enables the creation of Actively Validated Services (AVSs) like EigenLayer, where staked ETH secures new middleware (e.g., oracle networks like eOracle, data availability layers). Governance here is about curating the AVS whitelist and slashing parameters. It's a meta-governance layer, trading direct protocol control for the ability to bootstrap security for an entire ecosystem of new protocols from a shared pool of capital.

GOVERNANCE RIGHTS

Technical Deep Dive: Slashing, Delegation, and Composability

Understanding governance rights is critical when choosing between restaking and primary staking. This section breaks down the key differences in voting power, proposal influence, and protocol control.

No, restakers typically have less direct voting power than primary stakers. In primary staking (e.g., on Lido, Rocket Pool), stakers directly vote on protocol upgrades and treasury allocations. In restaking (e.g., EigenLayer), governance rights are often delegated to the underlying Actively Validated Service (AVS) operators. The restaker's influence is indirect, filtered through the operator's decisions on which proposals to support, which can dilute individual voter weight.

verdict
THE ANALYSIS

Final Verdict and Strategic Recommendation

A data-driven breakdown of governance rights in restaking versus primary staking to guide infrastructure decisions.

Primary Staking Governance excels at providing direct, protocol-specific influence because it is natively integrated into a single blockchain's consensus and upgrade process. For example, a validator with 32 ETH on Ethereum Mainnet has a direct vote on Ethereum Improvement Proposals (EIPs) and can participate in DAOs like Lido or Rocket Pool for specific protocol decisions. This model offers high clarity, as governance power is directly proportional to the native stake and its economic security is tightly coupled to the success of that single chain.

Restaking Governance takes a different approach by decoupling and re-delegating governance rights across multiple protocols. This results in a trade-off between amplified influence and increased complexity. By restaking ETH via EigenLayer, a staker can simultaneously vote on proposals for diverse AVSs like EigenDA, Espresso, and Lagrange, effectively multiplying their governance footprint. However, this creates layered risk and requires active management across multiple governance frameworks, with slashing conditions that are more intricate than primary staking.

The key trade-off is focus versus breadth. Primary staking governance, with its clear alignment and simpler risk profile, is ideal for protocols seeking deep, dedicated influence on a single core chain—think a CTO building a major L2 on Ethereum who needs to steer its base layer development. Restaking governance is superior for infrastructure builders or funds aiming to shape the broader modular ecosystem, as it allows a single capital base to secure and govern multiple services like oracles, data availability layers, and co-processors, as evidenced by the rapid growth to over $15B in TVL on EigenLayer.

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