The idea of proposing Lido DAO to sell 10 million tokens to Dragonfly Capital ended last month, but so far, there has been a positive result for this community.
The new proposal seems to have turned the tide completely and brought a glorious victory for Lido DAO yesterday, with more than 99% of the votes in favor, according to the results from the Snapshot site.
On July 20, the token sale was part of a treasury diversification plan for Lido. The protocol wants to sell 20 million LDO tokens to investment funds to cover operating costs over the next two years. Half of this allocation will go to Dragonfly if the vote is passed.
The first vote on the proposal to sell tokens to Dragonfly Capital ended on July 25 with many objections. This is primarily because of concerns about why Dragonfly Capital will “dump” LDO as soon as the deal is completed.
Lido Finance then immediately submitted a new improvement proposal, which included two LDO price ranges and set a token lockout period to appease the community.
Hasu, an advisor to Lido Finance and head of the strategy at Flashbots, said that the structure of the previous deal caused a lot of confusion and highlighted several issues related to negotiating business deals. with decentralized organizations like the DAO. He shared:
“The first proposal didn’t have a contingency for the case that the LDO price increased after posting, and that’s why the vote predictably failed. The second proposal does have a contingency — the purchase price now moves up together with the spot price — and it also addresses another concern the community had around lockups.”
To the above news, LDO reacted strongly, increasing by nearly 8%, in stark contrast to the time of the first proposal. Currently, LDO is trading at $2.59.
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