LDN is the base governance token of the Lydian protocol. It represents a share of the total Treasury and is your Guild Membership card.
Your weight in governance votes is also determined by the amount of Lydian tokens you have in your wallet, whether its LDN, sLDN or wLDN.
We strongly advise to always have your LDN in the form of sLDN or wLDN. This way the tokens will accrue rebase rewards, which regular LDN will not.
In the end, it is up to you which part of your LDN you want to stake and which part you want to provide as liquidity to the protocol.
As always, the Lydian Discord is a great place for an open discussion with other Guild Members, who are faced with the same conundrums to get the best rewards.