Ethereum staking protocol Lido Finance rejected a proposal to sell 10 million LDO tokens for $14.5 million to the Dragonfly Capital investment fund.
Voting Results
Voting on the proposed token sale for Dragonfly Capital ended yesterday. The victory went to nearly 600 members, representing 43 million Lido DAO (LDO) tokens, who voted against the proposal. This number accounted for 66% of the total vote. Meanwhile, only two addresses holding up to 21 million LDO tokens have approved the token sale to the other investment fund.
The token sale is part of a proposal to diversify the treasury for Lido. The protocol wishes to sell 20 million LDO tokens to investment funds to cover operating costs for the next two years. Half of this allocation will go to Dragonfly if the vote is passed, but the results have been clear, with the majority not in favor of the proposal.
Which whale “pulled” behind the deal?
The deal with Dragonfly does not have token locking requirements, which is why it has drawn much criticism and led to rejected results. The identity of the whale wallets that originally backed this proposal also led to speculation about a possible conflict of interest, as whales spent up to 15 million LDO to side with them.
Always the same story.
DAO voting outcomes are usually determined before the proposal is even published.
All that 15m LDO vote for no lockup came from one wallet. Yet when you read the pre vote discussion, almost everyone advocating for some form of a lockup.
Theatrics. https://t.co/uWCCCiiBRe pic.twitter.com/xuiBlXgUdd
— Hsaka (@HsakaTrades) July 22, 2022
Cobie, a popular crypto investor and co-founder of Lido Finance, also seems to have weighed in on the vote. He added that doing so would lead to “cronyism and looting.”
VCs should be abstaining from any DAO votes to sell themselves tokens, wtf am I looking at lmao
If the vote is “Should we sell Misc Capital 10,000,000 tokens for $1?”
Then Misc Capital should abstain from voting on this proposal.
… Right?
— Cobie (@cobie) July 22, 2022
Voting has snow ended. But it remains unclear whether the DAO will move to vote on the other half of the plan right away.
Lido also has another related proposal pending. This proposal calls for selling 10,000 ether from the project’s general fund into stablecoins. Lid’s treasury is currently worth $290 million and holds 158 million LDO tokens ($251 million), 20,940 ETH ($32 million), staking 5 million ETH ($7 million), and a small number of coins/ other tokens.
