- The Lido community has voted to sell 10 million LDO ($25 million) from the project’s treasury to Dragonfly Capital.
- Dragonfly has reportedly committed itself to selling and is “excited” to see the show progress.
- Today’s vote succeeded after an earlier vote failed, but a vote on the series still has to be held in Aragon.
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The Lido community has voted to sell 10 million LDO tokens (approximately $25 million) to Dragonfly Capital.
Lido will sell 10 million tokens
Lido will sell a portion of its treasury funds to a third party.
Dragonfly Capital, a crypto investment fund, will buy 1% of the tokens held in Lido’s DAO treasury.
was selling agreed Almost unanimously. 60 million LDOs were used to vote for the plan, with a support ratio of 99.09%. Only 553,000 LDOs were used to vote against the plan, representing 0.91% against the proposal.
Dragonfly has committed to the purchase price based on a time-weighted average price (TWAP) plus a premium. There will be a one-year confinement before the tokens become liquid.
Dragonfly had the ability to withdraw from the deal when LDO prices crossed $2.50 during the voting period but did not. “Dragonfly has complied with the terms and will not veto,” said Jacob Bleich of Lido.
Dragonfly’s Tom Schmidt also confirmed that the deal will go through, noting that the company is “excited to move forward with the proposal.”
The voting period lasted between 28 July and 4 August. She will now proceed to vote for the series on the DAO Aragon platform.
Last month, a similar vote was unsuccessful, as voters were unhappy with the terms of the sale – namely the prices offered and the lack of dress requirements. That deal would also have seen Dragonfly buy 2% of supply from the Treasury instead of 1%.
The sale aims to diversify Lido’s holdings by raising funds in the form of stablecoins. The original proposal was expected to secure two years of runway operation for Lido DAO.
The vote follows other high-profile decisions. Earlier this year, Lido considered limiting the amount of Ethereum that could be stored on the platform, despite the community overwhelmingly decided against This, the proposal did not pass.
Lido is also considering giving voting rights to ETH (stETH) holders along with LDO holders. This proposal has not yet been voted on and is still under development.
Disclosure: At the time of writing, the author of this article owns BTC, ETH, and other cryptocurrencies.