Liquid staking protocol, Lido Finance’s community issued a treasury diversification proposal to sell 10M LDO (Lido DAO) tokens for $14.5M to crypto-focused investment firm Dragonfly Capital. The DAO however voted against the proposal with 66.61% votes.
According to the proposal, LDO token holders were asked to vote on the following:
- No-Proposal needs more work
- For-Keep as listed, 1 yr lock up
- For-Keep as listed, no lock-up
Half of Lido’s proposed treasury diversification plan is represented by this token sale, 20M LDO tokens would have been sold in full at a fixed price of $1.45.
If the vote was successful, Dragonfly would’ve received half of this allocation. Those who voted against the proposal were 600 DAO members, totaling 43M LDO tokens.
Only two addresses, totaling 21M LDO tokens, cast a vote in favor of the LDO token sale in the meantime.
According to Lido’s original proposal, Dragonfly would have not been required to lock up the LDO tokens. This did spark heated arguments in the diversification proposal’s forum discussion.
The identity of the whale wallet that initially supported the proposal also raised concerns in the community.
So in conclusion the Lido DAO is in favor of the proposal needing more work, and Lido Finance has not yet revealed its future plans regarding this.
Lido is also working on another treasury management proposal. This proposal requires the conversion of 10,000 ether from the Lido’s treasury into stablecoin.
