- The lido community voted for selling 10 million LDO
- Dragonfly will be acquiring part of the treasury
Lido wants to sell a part of its treasury funds to a third party.
A crypto investment fund, Dragonfly Capital, is going to purchase 1% of the tokens carried by Lido’s DAO treasury.
The sale was accepted without opposition and with the agreement of all people involved. Sixty million LDO were asked to vote for the proposal, and almost 99.09% voted in its support. A number of 553,000 LDO were not in favor of the proposal that was 0.91% were opposing the plan.
Dragonfly pledged to buy price based on a time-weighted average price (TWAP) and a premium. A one-year hold will be applied before tokens become liquid.
The crypto investment fund had the capability to pull out of the deal when LDO prices went over $2.50 during the term of voting, but Dragonfly did not choose to do that.
The head of business development at Lido mentioned that “dragonfly pledged to the words and will not approve the veto article.”
A partner at Dragonfly, Tom Schmidt, has validated that the deal will be carried on and mentioned that the company is very excited to further move on with the plan.”
Dragonfly was willing to purchase 2%
The term of voting was from July 28 to August 4. It will now shift to an on-chain vote on Aragon, a DAO platform.
In July, the same voting was done, but it was failed, as voters were not pleased with the terms of the plan. From that deal, Dragonfly was willing to purchase 2% of the treasury fund, which is now only 1%.
The sale is planned to transform Lido’s holding by collecting funds in stablecoins. The first plan was intended to protect two years of the operating path for the Lido DAO.
The vote goes along with other prominent decisions. At the beginning of this year, Lido took into account about restricting the number of Ethereum that could be collected on the platform. However, the community immensely decided not to do this, so the plan failed.
Lido is also thinking about permitting voting rights to ETH holders along with LDO holders. This plan is still in progress, and the plan is not voted on now.
Source: https://www.thecoinrepublic.com/2022/08/05/dragonfly-to-acquire-1-of-the-treasury-of-lido/