- Lido DAO announces that it has opened a vote and plans to sell 2% of the total LDO.
- The 2% of the total LDO, which will amount to 20 million LDO, will be sold at a price of $1.45.
- Dragonfly will lead the investment and purchase 10 million LDOs.
Lido DAO, the decentralized autonomous organization of the largest provider of staking services for Ethereum, has opened a vote and plans to sell 2% of the total LDO (20 million LDO) at a price of $1.45. According to the proposal, Dragonfly Capital will lead the investment and purchase 10 million LDOs. The sold LDOs will be unlocked immediately with full voting rights.
Lido DAO is also taking timeliness into account due to market volatility. As a result, they aim to finalize the terms via Snapshot vote immediately to execute the deal in the coming week.
This proposal is looking to secure ~2 years of operating runway for Lido DAO, in stable coins. This will ensure Lido and its core contributors are able to continue the important work needed for the protocol in the long term and to flourish as an autonomous, self-governing collective.
According to data from CoinMarketCap, the protocol’s native token, LDO, has seen a 136.36% uptick in price in the last seven days, and trades at $1.47 at the time of writing.
Through its official blog, Lido also revealed its expansion plans yesterday. “We’re beyond pleased to unveil our expansion plans for Lido on L2, starting with the expansion of stETH across the growing L2 DeFi ecosystem,” read the post.
Lido is launching stETH on Layer 2 🏝️
Ethereum is scaling, and so is Lido.
Lido stakers will soon be able to use their stETH assets in DeFi on Layer 2.
Read more about it here: https://t.co/QCsQry4V41
— Lido (@LidoFinance) July 18, 2022
Notably, over the past two years, DeFi platform Lido has become the largest provider of staking services for Ethereum. Staking is a method that allows crypto owners to earn passive income without having to sell their tokens.
Founded in 2018, Dragonfly Capital is a global, crypto-focused investment firm that is led by crypto-native investors.
In related news, Fortune published an article earlier last month claiming that Lido had centralization issues that raised red flags. “One entity holding a huge amount of Ether could raise security risks for the network,” read the article. The opinion piece also speculates that Ethereum’s Merge could pose problems for small investors in Lido.