Lido DAO Votes Against Selling LDO 10M Tokens to Dragonfly Capital

Lido DAO Votes Against Selling LDO 10M Tokens to Dragonfly Capital
Source: AdobeStock/ lijphoto

The neighborhood members of Lido Finance, a decentralized financing (DeFi) procedure and third-party staking swimming pool operator for Ethereum (ETH) 2.0, have actually voted against a proposition to sell LDO 10m tokens to crypto financial investment company Dragonfly Capital for DAI 14.5 m.

The vote, which concluded on Monday after a four-day ballot duration, ended with 609 DAO members getting involved, representing over 64m Lido DAO (LDO) tokens.

Of that tally, an overall of LDO 43m voted against the proposition, while another 21m enacted assistance of it.

As reported, Jacob Blish, Head of Business Development at Lido, advanced a proposition looking for to protected around 2 years of “running runway” for Lido DAO in stablecoins. The proposition intended to offer 2% of the supply of LDO from the treasury, which corresponds to LDO 20m, in exchange for algorithmic stablecoin DAI.

At a cost of USD 1.452153 per LDO token, the DAO goals to raise USD 29m in DAI stablecoin.

The newest vote was just to identify whether to offer half of that quantity, or LDO 10m,to Dragonfly If passed, the DAO would have gotten DAI 14,521,530 in exchange for 1% of the LDO supply (or 10M tokens).

The ballot has not come without its reasonable share of debate. In the early days of the ballot, a whale address cast their LDO 15m token power to back the proposition, producing a more than 99% approval rate.

This led to lots of hypothesizing who the whale might be and whether they had any connection withDragonfly

While crypto scientist Larry Cermak stated it might be an over the counter (OTC) desk, Nansen CEO Alex Svanevik shared a screenshot recommending that the whale address that supported the vote was connected with trading company Alameda Research, the moms and dad business of the popular crypto exchange FTX

Notably, Cobie, a widely known crypto financier and co-founder of Lido Finance, stated VCs must not take part in DAO ballot, declaring that this might lead to “cronyism and pillaging.”

” VCs should be avoiding any DAO votes to offer themselves tokens,” he stated on Twitter, “If the vote is ‘Should we offer Misc Capital 10,000,000 tokens for [USD] 1?’ Then Misc Capital must avoid voting on this proposition. … Right?”.

Meanwhile, the LDO token has actually taken a hit over the previous 24 hr, coming by around 11% to USD 1.39. aT 8:17 UTC on Monday, it’s down 8% in a week, up 116% in a month, and down 81% from its August 2021 all-time high.

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