Lido DAO Price Drops By 13% Over Rejection Of This Proposal

Lido DAO (LDO) emerged to be one of the most gaining tokens among the top 100 cryptocurrencies over the past 30 days. However, the LDO token prices have taken a hit over the rejection of its governance proposal to diversify the treasury.

Lido community says no to this proposal

According to Lido Finance, the proposal focused on the 1% allocation for DragonFly Captial got failed. More than 66% of the voters choose the option ‘No – Proposal needs more work’. However, around 33% of the member voted for ‘keep- as listed, 1 year lock up.’

The proposal aimed to build a position for the stablecoin DAI in exchange for 1% of the LDO token supply. 10 million of the Lido DAO tokens would be sold at a price of $1.4521 per token for a total of $14.52 million.

Lido Finance mentioned that they will revisit the proposal based on the discussion in the research forum. Fresh voting will be done that accommodates the feedback and will be moved asap.

LDO token’s price jumped by over 113% over the past 30 days. Meanwhile, its price has dropped by more than 11% in the last 24 hours. Lido DAO is trading at an average price of $1.41, at the press time. Its 24 hour trading volume has also dropped by 14% to stand at $56.5 million. LDO’s circulating supply stands around 312.95 million.

DAO introduces new proposal

Meanwhile, stablecoin, DAI’s 24 hour trading volume has jumped by 105% to stand at $894.8 million. However, it has also registered a minor drop of 0.02% over the past 24 hours.

The Lido in its labeled ‘Treasury Diversification #2’ proposal highlighted that it is looking to secure 2 years of operating runway for Lido DAO in stable coins. This will be done in order to ensure stability to Lido and its core contributors.

It added that to secure the operating runway, Lido proposes to sell 2% of the LDO token supply from its treasury. Around 20 million LDO will be sold at $1.4521 per token.