Lido DAO, the governance forum for the Lido Finance project, has put forward a new proposal for selling LDO 10m tokens to crypto investment firm Dragonfly Capital, apparently with better terms.
“Ok, lets try this again,” states the new proposal, which was submitted by Lido’s head of business Jacob Blish on Wednesday. It calls for selling LDO 10m tokens to the VC firm but with some adjustments. For one, the proposal now includes a one-year vesting period for Dragonfly.
“DragonFly Ventures has agreed to swap in place of DragonFly Liquid. They are offering the current best terms regarding ongoing discussions and size,” claims the proposal.
The re-worked proposal also has a new pricing model that appears to benefit the community. Instead of a set price, the sale will have two possible price benchmarks: one is the previous option of selling at a 7-day TWAP (time-weighted average price) with a 50% premium, while the other is an average LDO price for the seven days preceding the vote with a 5% premium.
Dragonfly will have to commit to the higher of the two pricing options unless it equates to more than USD 2.25 per coin, at which point the VC firm can exit the deal.
This has ostensibly fueled a rally around Lido DAO’s native token LDO, which has gained 31% over the past 24 hours, reaching USD 2. At 8:06 UTC on Tuesday, the price is also up 28% in a week and 250% in a month. The coin is down 72% since its August 2021 all-time high.
As reported, the community voted against a proposal to sell LDO 10m tokens to Dragonfly Capital for DAI 14.5m. The vote came after Blish had put forward a proposal seeking to secure around two years of “operating runway” for Lido DAO in stablecoins. The proposal aimed to sell 2% of the supply of LDO from the treasury, which equates to LDO 20m, in exchange for algorithmic stablecoin DAI.
The recent votes were only to determine whether to sell half of that tally or LDO 10m to Dragonfly.
The latest proposal will be put up for a vote at “approximately UTC 10pm” today, Blish said.
Meanwhile, the new proposal seems to have the support of the community. “Nice compromise for the Lido/dragonfly sale. Nice to see how community concerns were addressed in both fronts,” said Maya Zehavi, founder and CEO at Stealthy New Venture and Founding Board Member of the Israeli Blockchain Industry Forum.