The Lido decentralized autonomous organization (DAO) almost unanimously approved the sale of about US$25 million worth of treasury tokens to venture capital firm Dragonfly Capital on Thursday.
See related article: Lido Finance floats 2nd proposal to sell LDO to Dragonfly Capital
Fast facts
- The voting page shows over 99% of the community members voted in favor of the proposal, which was tweaked after the last proposal had failed.
- The tweaked proposal included a one-year lock-in period, the absence of which was one of the main reasons the previous proposal was rejected.
- The sale to Dragonfly Capital is half of a treasury diversification plan of Lido Finance, in which 20 million Lido tokens will be liquidated to be replaced by DAI stablecoin.
- The new proposal also tweaked the price range of the Lido tokens for sale — Dragonfly Capital could reportedly buy the LDO tokens at about US$1.45 per token or pay the price based on a seven-day backward-looking average at the end of the vote, whichever was higher.
- However, the proposal allows Dragonfly Capital to exit the deal if the token price exceeds US$2.25.
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