Liquid staking giant Lido Finance has submitted a new proposal for the sale of Lido DAO tokens to Dragonfly Capital, which still includes 10 million Lido DAO (LDO) tokens, but with a one-year lockup period, according to an investor at Dragonfly Capital. 

This announcement comes just two days after the initial proposal was rejected, as it did not include a one-year lock up period. That means Lido community members rejected an almost $15 million dollar sale. 

In addition to the lockup period, another change in the new proposal is the sale price. The previous plan was a flat rate of $1.45 per LDO token. Now there is a second pricing alternative which is based on the seven-day average of LDO at the time the voting process ends, plus a 5% premium.  

Dragonfly will choose the higher of the two, but can back out if that seven-day average price is above $2.25 per token. 

The new vote will start today, July 27 at 6:00 p.m. ET. Unlike the last vote which gave community members three possible choices, this vote has two: for or against. 

The previous vote failed to pass, despite one community member committing 15 million LDO tokens to support the proposal. Dragonfly also stated that they were behind the vote, according to Tom Schmidt, partner at Dragonfly. 

The proposal will allow DAO to build a position in the stablecoin DAI in exchange for 1% (10 million) of LDO supply. The sale represents half of Lido’s proposed treasury diversification proposal. The full plan is to sell 20 million LDO tokens, with half being sold to Dragonfly. 

Author: Tyler Irvin