Lido DAO Approves Revised Token Sale To Dragonfly Capital
Dragonfly will buy LDO tokens at $1.45 or higher.
A revamped plan to sell 10 million LDO tokens to venture capital firm Dragonfly Capital has passed with near-unanimous support from the Lido community.
Dragonfly Capital will buy 1% of the LDO token supply from the DAO treasury with a 1-year lock-up period.
Holders of around 60M LDO (99.09%) tokens voted in favour of the plan, with just 553,000 LDO (0.91%) against the proposal.
Lido is crypto’s largest liquid staking protocol, with $7.43B locked on Ethereum as of Aug. 5, according to data from Defi Llama. It allows users to simultaneously stake their Ether in the Beacon chain and access their locked liquidity using a derivative token, called stETH, backed 1:1 by their staked ETH. stETH can then be used to earn yield in the wider DeFi ecosystem.
The vote is part of Lido’s Treasury Diversification plan to cushion itself against an extended crypto winter. The Lido leadership expects the proposal to secure two years of operating runway.
A previous proposal was rejected by the Lido community last month due to the price and the absence of a lockup period.
The terms of the deal were then revised and Dragonfly has now committed to buying tokens at $1.45 per LDO or at the “7-day backward-looking [two-week average price] taken at the time of vote completion + 5% premium” – whichever is higher – with a 1-year lockup.
Lido has proposed another plan to further shore up its bear market defences, which seeks to swap 10,000 ETH of Treasury funds for DAI, a dollar-pegged stablecoin, and should cover about two years of operational expenses.