The Finance protocol's native token is LDO, which issues the Staked Ether (stETH) token. DAI is the Maker Protocol's dollar-pegged stablecoin. If it had been approved, the crypto VC Dragonfly Capital would have received 10 million LDO tokens worth $1.45 each.
There were 609 votes cast across three options, but the proposal was rejected with 43 million tokens in favor of rejection. The vast majority of the votes were cast by nine whales, who had a total of 40.3 million tokens.
The other two choices were either a one-year lockup on the LDO tokens or no lockup.
This vote was for the first half of the proposed 20 million LDO token allocation. The second tranche of 10 million LDO tokens could be sold to LidoDAO's treasury, but it's unclear whether that vote will take place in the aftermath of the first rejection. Lido's treasury is worth approximately $228 million as of this writing.DAO member Jacob Blish's July 18 proposal sought to secure a two-year runway to carry out its functions under the Finance protocol without additional fundraising. According to Blish, “This will ensure Lido and its core contributors can continue the important work needed for the protocol in the long term and to flourish as an autonomous, self-governing collective.”
Blish said that the proposal calls for the accumulation of stablecoins to ensure Lido's "survivability and security independent of further market actions."
Community members appear unconcerned about the outcome of the vote, as the project's Discord and Twitter accounts have been silent since the results were announced. With the rejection, the proposal will be revisited and possibly voted on again.
Dragonfly Capital, led by Haseeb Qureshi and Bo Feng, has a crypto and Web3 investment portfolio that includes at least 57 companies. In April, the company raised $650 million in funding.
The company enables ETH investors to stake their coins in preparation for the Ethereum network's expected September transition to Proof-of-Stake (PoS) consensus.
The LDO whale, who used its considerable weight of 17 million tokens to vote against the proposal, has voted in favor of another ongoing vote at LidoDAO that, if passed, will add a developer to one of the project's multi-sig wallets. This proposal aims to improve the security of the protocol's funds.