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Usha Yadav
Jul 26, 2022
by Usha Yadav

LidoDAO Rejects Offer to Sell $14.5M in LDO Tokens to Dragonfly Capital

LidoDAO Dragonfly Capital

Table of contents

  1. Proposal Received Rejection
  2. Lido Community Has No idea About The Outcome
LidoDAO, the entity that governs Lido Finance (DAI), has rejected a proposal that would have given 1% of the LDO token supply to Dragonfly Capital for roughly $14.5 million in Dai. The Lido Staked Ether (stETH) token, issued by the Lido Finance system, uses LDO as its native token. The Maker Protocol has released DAI, a stablecoin tethered to the dollar. Dragonfly Capital, a cryptocurrency venture capital firm, would have gotten 10 million LDO tokens valued at $1.45 each if it had succeeded.

Proposal Received Rejection

The proposal received 609 votes across the three choices but got a rejection with 43 million tokens in the negative. Nine whales, whose combined 40.3 million tokens made up the great bulk of the negative votes, contributed 40.3 million tokens to the rejection. The other two options - either no lockup or a one-year lockup on the LDO tokens - favor the idea.

This vote was for the first 10 million LDO tokens to be distributed as part of the proposal. The second tranche of 10 million LDO tokens may be sold to LidoDAO's treasury, but it's unclear if a vote will be held after this initial rejection. Jacob Blish, a DAO member, proposed on July 18 to give LidoDAO a two-year runway to perform its duties under the Lido Finance protocol without worrying about additional fundraising.

Lido Community Has No idea About The Outcome

The project's Discord and Twitter accounts have been silent since the results were announced, suggesting that members of the Lido community are unconcerned with the referendum's outcome. The idea will now need to be revised and may be put to a second vote after being rejected.

At least 57 businesses are included in the cryptocurrency and Web3 investment portfolio of Dragonfly Capital, which Haseeb Qureshi and Bo Feng run. In April, the company completed a $650 million fundraising round.

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LidoDAO Rejects Offer to Sell $14.5M in LDO Tokens to Dragonfly Capital
Usha Yadav
Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.