LidoDAO, the governing body that controls Lido Finance, has voted to reject a proposal that would send 1% of LDO tokens to Dragonfly Capital in exchange for around $14.5 million in DAI.

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LDO is the native protocol token of Lido Finance, which issues the Lido Staked Ether (stETH) token. DAI is a dollar-pegged stablecoin issued by the Maker protocol. Had it passed, crypto venture company Dragonfly Capital would have received 10 million LDO tokens at $1.45 each.

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A total of 609 votes were cast for the three options, but the proposal was ultimately rejected with 43 million tokens in favor of opting out. Nine whales, whose combined 40.3 million tokens accounted for the vast majority of the voting weight.

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The other two options were in favor of a proposal with either a yearly lock of LDO tokens or no lock.

This vote was for the first half of the total LDO token distribution of 20 million provided for in the proposal. The second part of the 10 million LDO tokens may be sold to the LidoDAO treasury, but it is not clear if this vote will take place after the first refusal. Treasury of the Lido at present valued about $228 million at the time of writing.

July 18 sentence issued by DAO member Jacob Blish was intended to provide LidoDAO with a two-year runway to fulfill its role in the Lido Finance protocol without worrying about further fundraising. Blish stated:

“This ensures that Lido and its core contributors can continue the important work needed for the protocol in the long term and thrive as an autonomous, self-governing collective.”

Blish added that the proposal specifies an accumulation of stablecoins to ensure that Lido can remain in a “robust state to ensure Lido’s survivability and security regardless of further market action.”

Members of the Lido community seem unconcerned about the results of the vote, as the project’s Discord and Twitter accounts have remained silent since the results were received. If rejected, the proposal will go back to the drawing board and possibly be voted on again.

Led by Hasib Qureshi and Bo Feng, Dragonfly Capital has no less than 57 companies in its crypto and Web3 investment portfolio. In April, the company closed a $650 million funding round.

Lido allows ETH investors to stake their coins in preparation for the transition of the Ethereum network to Proof-of-Stake (PoS) consensus, which is expected by September.

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Keith LDO, who brandished his considerable weight of 17 million tokens to reject the proposal, voted for another continuous vote on LidoDAO, which will add the developer to one of the project’s multisig wallets if accepted. This proposal is intended to improve the security of the protocol facilities.