Lido DAO, the governing body that controls Lido Finance, rejected an offer to send 1 percent of the LDO token supply as Dai (DAI) to Dragonfly Capital. The amount of 1 percent in question was equivalent to approximately 14.5 million dollars. Here are the details…
Lido DAO rejected the last offer
cryptocoin.com As we have also reported, LDO is the native token in the Lido Finance protocol that issues the Lido Staked Ether (stETH) token. DAI is extracted by the Maker Protocol. It is a stablecoin pegged to the dollar. Had the bid passed, crypto venture capitalist Dragonfly Capital would have received 10 million LDO tokens at $1.45 each. A total of 609 votes were cast across the three options, but the proposal was ultimately rejected. The offer was rejected for a total of 43 million tokels. A total of 40.3 million tokens are in the hands of nine whales, which account for the majority of the votes.
The first of the other two options was for a one-year lock-in in LDO tokens. The other was in favor of the proposal without locking. This vote was for the first half of the total 20 million LDO token allocation envisioned in the proposal. The second portion of 10 million LDO tokens can be sold to the LidoDAO treasury. However, it is unclear whether this vote will take place after this initial rejection. Lido’s treasury is currently worth approximately $228 million at the time of writing.
What was the purpose of the proposal?
The July 18 proposal, published by DAO member Jacob Blish, was intended to provide a two-year runway for LidoDAO to carry out its functions within the Lido Finance protocol without worrying about raising more funds. “This will enable Lido and key contributors to continue the important work required for the protocol over the long term and to thrive as an autonomous, self-governing collective,” Blish said.
Blish added that the proposal identifies stablecoin accumulation to ensure that Lido remains “in a stable state, regardless of further market action, to ensure the survival and security of Lido.” The project’s Discord and Twitter accounts have been quiet since the results came in. That’s why members of the Lido community remain indifferent about the result of the vote. With the proposal rejected, the proposal will go back to the media and will likely be re-voted.
Led by Haseeb Qureshi and Bo Feng, Dragonfly Capital has at least 57 companies in its crypto and Web3 investment portfolio. The firm closed a $650 million funding round in April. Lido allows Ether (ETH) investors to stake their coins in preparation for the Ethereum network’s expected transition to Proof-of-Stake (PoS) consensus by September. Revealing 17 million tokens of considerable weight to reject the proposal, the LDO whale voted in favor of another ongoing vote on LidoDAO. If accepted, it will add a developer to one of the project’s multi-signature wallets. This proposal is designed to increase the security of the funds of the protocol.
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