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Top cryptocurrency news: LidoDAO rejects sale of 10 million LDO tokens

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LidoDAO, the that oversees Lido Finance, has voted to

reject a proposal to send 1% of the LDO token supply to Dragonfly Capital in return for about $14.5 million in DAI.

The Lido Finance protocol's native token is LDO, which issues the Lido Staked Ether (stETH) token. DAI is the Maker Protocol's dollar-pegged stablecoin. If it had been approved, the crypto VC Dragonfly Capital would have gotten 10 million LDO tokens at $1.45 apiece.

A total of 609 votes were cast among three options, however, the proposal was eventually rejected with 43 million tokens in support of rejection. The vast majority of the votes were cast by nine whales with a combined total of 40.3 million tokens.

The other two options were either in support of the proposal with a one-year lockup on the LDO tokens or in favor of the proposal with no lockup.

This vote was for the first half of the proposal's overall 20 million LDO token allotment. The second tranche of 10 million LDO tokens might be sold to LidoDAO's treasury, but it is uncertain if that vote will take place in the aftermath of the initial rejection. As of this writing, Lido's treasury is worth around $228 million.

DAO member Jacob Blish's July 18 proposal sought to ensure a two-year runway for LidoDAO to carry out its activities under the Lido Finance protocol without the need for additional funding. According to Blish, “doing so will ensure that Lido and its core contributors can carry out the necessary work for the protocol going forward and prosper as a standalone, self-governing collective.”

Blish went on to say that the proposal calls for the acquisition of stablecoins to secure Lido's survival and security in the face of future market fluctuations.

Members of the Lido community appear unconcerned about the conclusion of the poll, since the project's Discord and Twitter accounts have been silent since the results were announced. With the rejection, the proposal will be revisited and may be voted on again.

Dragonfly Capital, helmed by Haseeb Qureshi and Bo Feng, has at least 57 firms in its crypto and Web3 investment portfolio. In April, the company received $650 million in investment.

The LDO whale that used its substantial weight of 17 million tokens to vote against the proposal has voted in support of another ongoing vote at LidoDAO that, if successful, will add a developer to one of the project's multi-sig wallets. The purpose of this proposal is to improve the security of the protocol's finances.

Read also: Ethereum staking service provider Lido announces layer-two extension


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