- The Lido community voted to sell 10 million LDO ($25 million) of the project fund to Dragonfly Capital.
- Dragonfly itself is said to be committed to the sale and is “thrilled” to see the proposal go ahead.
- Today’s vote succeeded after a previous vote failed, but an on-chain vote must be held for Aragon.
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The Lido community voted to sell 10 million LDO tokens (about $25 million) to Dragonfly Capital.
Lido will sell 10 million chips
Lido will sell a portion of its cash funds to a third party.
Dragonfly Capital, a crypto investment fund, will buy 1% of the tokens contained in Lido’s DAO fund.
The sale was approved almost unanimously. 60 million LDOs were used to pass the plan, amounting to 99.09% support. Just 553,000 LDOs were used to vote against the plan, representing 0.91% opposition to the proposal.
Dragonfly is committed to a purchase price based on a time-weighted average price (TWAP) plus a premium. There will be a one-year lock-up before tokens become liquid.
Dragonfly had the option to exit the deal when LDO prices exceeded $2.50 during the voting period, but did not. Lido’s Jacob Blish said: “Dragonfly is committed to the terms and will not exercise the veto clause.”
Dragonfly’s Tom Schmidt also confirmed that the deal will go ahead, noting that the company is “excited to move forward with the proposal.”
The voting period ran from July 28 to August 4. It will now proceed to an on-chain vote on the DAO Aragon platform.
Last month, a similar vote was unsuccessful, as voters were unhappy with the terms of the sale—namely the listed prices and the lack of an investment requirement. This deal would also see Dragonfly buy 2% of the treasury commission instead of 1%.
The sale aims to diversify Lido’s holding by raising capital in the form of stablecoins. The original proposal was expected to secure two years of runway operation for the Lido DAO.
The vote follows other high-profile decisions. Earlier this year, Lido considered limiting the amount of Ethereum that could be staked on the platform, although the community overwhelmingly decided against that, and the proposal did not pass.
Lido is also considering granting voting rights to staked ETH (stETH) holders alongside LDO holders. This proposal has not yet been voted on and is still being processed.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH and other cryptocurrencies.