LidoDAO, the governing body that controls Lido Finance, has voted to reject a proposal that would have sent 1% of the LDO token supply to Dragonfly Capital in exchange for some $14.5 million in Dai (DAI).
LDO is the native token of the Lido Finance protocol, which issues the Lido Staked Ether (stETH) token. DAI is the dollar-margined stablecoin issued by the Maker protocol. Had it been approved, venture capital firm Dragonfly Capital would have received 10 million LDO tokens at $1.45 each.
A total of 609 votes were cast between three options, but the proposal was ultimately rejected with a total of 43 million tokens in favor of rejection.. Nine whales voted, with their pool of 40.3 million tokens making up the vast majority of the weight of the votes.
The other two options were in favor of the proposal, either with a one-year lock on the LDO tokens or without a lock.
This vote was for the first half of the total allocation of 20 million LDO tokens stipulated in the proposal. The second part of 10 million LDO tokens could be sold to the LidoDAO treasury, but it is not clear if that vote will take place after this first rejection.. Lido’s treasury is currently valued at around $228 million at the time of writing.
The July 18 proposal issued by DAO member Jacob Blish aimed to secure a two-year runway so that the LidoDAO can carry out its duties in the Lido funding protocol without worrying about raising funds. Blish stated:
“This will ensure that Lido and its major contributors can continue the important work needed for the protocol in the long term and thrive as an autonomous, self-managed collective.”
Blish added that the proposal specifies the accumulation of stablecoins to ensure that Lido can remain in a “stable state to ensure the survival and security of Lido.” regardless of other market actions.”
Members of the Lido community seem indifferent to the outcome of the vote, as the project’s Discord and Twitter accounts have been silent since the results were known.. With rejection, the proposal will start over from scratch and possibly be voted on again.
Dragonfly Capital, led by Haseeb Qureshi and Bo Feng, has at least 57 companies in its cryptocurrency 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 transition to proof-of-stake (PoS) consensus, which is expected in September.
The LDO whale that swung its considerable weight of 17 million tokens to reject the proposal has voted in favor of another ongoing vote on LidoDAO, and said proposal will add a developer to one of the project’s multisig wallets if approved. This proposal is designed to increase the security of protocol funds.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.