Lido DAO Votes No to Sale of 10M LDO to Dragonfly Capital

Lido Finance’s decentralized governance physique – Lido DAO – has voted towards a proposal to promote 10 million LDO tokens (1% of the availability) for $14.5 million in DAI to enterprise capital agency Dragonfly Capital.

• Out of the overall of 609 votes, 43 million LDO tokens, accounting for 66.61%, have been forged to reject the proposal.
• The voting that concluded on Monday basically had three selections for the members – comply with the proposal, comply with the sale however with a one-year lockup on the LDO tokens, or reject it completely.
• The unique proposal had no point out of the token vesting interval, which drew important criticisms within the discussion board dialogue.
• Hypothesis of a attainable battle of curiosity intensified after an unknown whale pockets backed the proposal. This led to the addition of an choice with no less than a one-year lock-up interval.
• With the “Treasury Diversification #2” proposal, the liquid staking protocol basically sought to safe two years of working runway for Lido DAO in stablecoins in a bid to make sure stability to the Lido ecosystem in addition to its core contributors.
• If the DAO members hadn’t rejected the proposal, Dragonfly Capital would have obtained 10 million LDO tokens at $1.45 every.
• Reacting to the outcomes, Lido Finance said that it’ll analyze the proposal once more on the idea of all of the discussions within the analysis discussion board earlier than commencing voting.

“The Lido DAO has voted on a current governance proposal to diversify the treasury, with the end result being ‘No – Proposal wants extra work’. Subsequently the proposal will likely be revisited primarily based on the dialogue on the analysis discussion board and a contemporary vote that accommodates that suggestions will likely be moved asap.”