LidoDAO Rejected The Proposal To Send LDO To Dragonfly Capital

LidoDAO rejected the proposal to send LDO tokens to Dragonfly Capital which was a proposal aimed to secure a runway for the platform to carry out the functions in the protocol without having to worry about further fundraising so let’s have a closer look in today’s latest cryptocurrency news.

LidoDao is a governance body that controls Lido Finance and voted to reject a proposal that was supposed to send 1% of the LDO token supply to Dragonfly capital in exchange for $14.5 million in dAI. LidoDAO rejected the proposal now. LDO is the native token of the protocol which issues the Lido staked Ether token. DAI is the dollar-pegged stablecoin that was issued by Maker Protocol and if it had passed, the Dragonfly Capital crypto venture would have received 10 million LDO tokens at $1.45 each.

A total of 609 votes were cast for the three options but the proposal was rejected with 43 million total tokens in favor of the rejection. Nine whales whose collective of 40.3 million tokens comprised the majority of the weight of the votes. The other two options were each in favor of the proposal either with the one–year lockup on the LDO tokens or with no lockup. The vote was for the first half of the total 10 million LDO token allocation stipulated in the proposal and the second portion of the 10 million LDO tokens can be sold to LidoDAO’s treasury but it is unclear whether the vote will take place after the first rejection. Lido’s treasury is valued at $228 million at the time of writing.

The proposal issued by DAO member Jacob Blish aimed to secure a two-year runway for the LidoDAO to carry out the functions in the finance protocol without having to worry about further fundraising. Blish stated:

“This will ensure Lido and its core contributors are able to continue the important work needed for the protocol in the long term and to flourish as an autonomous, self-governing collective.”

Blish added that the proposal specified the accumulation of stablecoins to ensure that Lido can remain in a steady state to ensure survivability and security for Lido. The community members seem not to be interested in the outcome of the vote as the project’s Discord and Twitter accounts got silent since the results came in. With the rejection, the proposal will go back to the drawing board and be voted again. Dragonfly Capital led by Haseeb Qureshi and Bo Feng has 57 companies in the crypto and Web3 investment portfolio and the company closed a $650 million funding in April.

Lido allows Ether investors to stake the coins in preparation for the Ethereum network’s transition to PoS consensus. The LDO whale who swung 17 million tokens to reject the proposal and voted in favor of the ongoing vote at LidoDAO that will add a developer to one of the multi-sig wallets if passed. The proposal is designed to increase the security of the funds of the protocol.