Lido Finance’s decentralized governance body – Lido DAO – has voted against a proposal to sell 10 million LDO tokens (1% of supply) for $14.5 million in DAI to venture capital firm Dragonfly Capital.
- Out of a total of 609 votes, 43 million LDO tokens, accounting for 66.61%, were cast to reject the proposal.
- In the vote that concluded Monday, members essentially had three options – agree to the offer, agree to the sale but with a one-year lockup on LDO tokens, or reject it altogether.
- There was no mention of the token vesting period in the original proposal, which drew significant criticism in forum discussions.
- Speculation of possible conflict of interest intensifies after unidentified whale purse Supported the proposal. This added an option with a lock-up period of at least one year.
- With the “Treasury Diversification #2” proposal, the Liquid Staking Protocol essentially seeks to secure a two-year operating runway for the Lido DAO in stablecoins to ensure the stability of the Lido ecosystem as well as its main contributors .
- Had the DAO members not declined the offer, Dragonfly Capital would have received 10 million LDO tokens at $1.45 each.
- Reacting to the results, Lido Finance Having said That it will re-analyze the proposal on the basis of all discussions in the Research Forum before commencing voting.
“The Lido DAO recently voted on a governance proposal to diversify the treasury, which resulted in a ‘no – the proposal needs more work’. So the proposal was reconsidered based on discussions in the research forum and a new vote accommodating that response will be sent as soon as possible.
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