Following the rejection of Lido Finance’s initial proposal to sell 10 million LDO to Dragonfly Capital for 14.5 million in DAI (essentially to diversify the asset makeup of its treasury) with no token lockup, the Ethereum staking protocol has revamped the proposal.
Due to their “ability to handle lockups”, Dragonfly Ventures has stepped in to take the deal instead of Dragonfly Liquid in the new proposal (separate divisions of VC firm Dragonfly Capital).
Dragonfly Capital will now commit to a final LDO price that is the higher of the following: previously defined time-weighted average price (TWAP) price plus 50% premium (around $1.45 per $LDO), or 7-day backward-looking TWAP taken at the time of vote completion plus 5% premium.
If the LDO price goes up above $2.25 during the voting period, Dragonfly Capital will be able to back out of the commitment.
“The updated proposal is focusing on DragonFly buying 1% (half) of the total 2% offered originally. The remaining 1% will be handled at a future date,” the community blog read.
Lido had earlier proposed selling some of the project’s treasury assets to Dragonfly Capital which was rejected by Lido DAO.
This new proposal will be voted on July 27th at 6:00 p.m. EDT. Voters will have only two options this time: yes or no, as opposed to three options in the previous vote.
After an unknown whale wallet backed the initial proposal, speculation about a potential conflict of interest grew.
Dragonfly’s Chief Product Officer, Tom Schmidt, clarified that it was the VC firm’s Liquid team wallet address and they had no malicious intent in supporting the vote to sell tokens to its own firm.
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