Lido Dao Voting on 10M LDO Token Sale to Dragonfly Capital

Lido Dao, the decentralized governance for Lido Finance, has begun voting on a proposed token sale to venture capital firm Dragonfly Capital, with one voter casting their 15 million LDO token power backing up the proposal “as is,” according to Snapshot data. 

This token sale represents half of Lido’s proposed treasury diversification proposal. The full plan is to sell 20 million Lido DAO (LDO) tokens at $1.45 per token. Half of this allocation will go to Dragonfly if the vote passes. 

The proposal represents DAO wanting to build a position in the stablecoin DAI in exchange for 1% (10 million) of LDO supply, totalling $14,521,530. This vote is solely focused on the allocated 1% for Dragonfly, leaving the other allocation for another time. 

The Snapshot vote gives DAO members three choices: agree to the proposal as is, agree to the sale but with a one-year vesting period, or disagree with the proposal entirely. The current debate among community members interested in the sale is whether or not to include a one-year period where Dragonfly must lock up the tokens, which the deal “as is” does not include. 

The vote started on Thursday and will continue until July 25, giving members four days to cast their vote. After the vote is finalized, the DAO will start to consider the other half of the treasury diversification plan. 

Prominent crypto Twitter personality and co-founder of Lido Finance, Cobie, weighed in on the discussion on Twitter. 

“VCs should be abstaining from any DAO votes to sell themselves tokens," he said on Twitter. "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?"

Author: Tyler Irvin

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