eth going over 2k… some eth can be sold there
for the 10 - 20 mm ldo tokens being sold, make sure there is a lock up
sorry if i come off like a jerk, but literally the future of ethereum is at stake pun intended
if lido goes down, binance, coinbase, etc take over all staking
I think DragonFly should be locked for at least 1 year, otherwise there is no guarantee that he will sell after a short-term profit.
thats fair. thanks for the replies.
deleted bc i dont wanna fight tbh
let me know when ur work is published by elon musk
Hey guys - it’s Ashwin from Dragonfly. Appreciate the constructive discussion, and wanted to share our team’s view on this proposal.
The primary purpose of the proposal is to ensure that the LidoDAO has adequate runaway in the case of continued market volatility. The LidoDAO currently has ~75 full-time contributors with annualized operating costs totaling $16-18MM. In our view, it’s critical for the LidoDAO to have ample stablecoin reserves to meet its payroll obligations over the next 18-24 months.
Dragonfly has been an active supporter of Lido since we participated in the first treasury diversification round last year. However, due to the constrained allocation for funds outside of Paradigm, our support has been limited to strategy calls and specific requests from core Lido contributors.
That said, we’re long-term investors and are looking forward to being more active in governance assuming this diversification proposal passes. We have never sold any of our purchased LDO from the previous round (despite unlocks), and do not intend to sell LDO purchased from this treasury sale at any point over the next few years.
We have the following additional thoughts on lockup terms/pricing:
a. If the LidoDAO were to market-sell 20M of LDO, its average execution price would be far lower than the current market price due to inconsistent liquidity and advance market knowledge of the sale. This will result in high price slippage if the tokens are sold within a short timeframe.
b. The LDO price increased by ~245% in the past 7-days. Given this volatility and the inconsistent liquidity (daily trading volume fluctuates between 50-150m a day), we believe the pricing methodology used is fair (7-day backward TWAP with a 50% premium).
c. Thus, we are not open to changing pricing for this sale.
a. A more traditional deal offering a discount on LDO tokens in exchange for a lockup would result in a lower sale price given interest expressed to Dragonfly/Lido by other potential sale participants. This would result in far less operating capital for the LidoDAO unless the LDO sale amount is increased.
b. The entity we’re using to purchase LDO tokens from the DAO has liquidity restrictions. This means it’s difficult for us to invest in illiquid token deals, hence the no-lockup structure of this deal.
We’re committed to honoring the result of a vote. However, since we cannot guarantee the participation of additional parties, we recommend splitting the vote into two parts. Part One will be a sale of 10m LDO to Dragonfly at the posted price + premium. Part Two will be a separate sale of 10m LDO to additional participants with different terms.
respect. but its well within your right to sell unlocked tokens. if theres no intention to sell for a few years, i dont think a 3 year lockup is unreasonable as it will yield the same result for dragonfly but garner more trust from the community.
eth is going back over 2k shortly
there should be a 3rd vote to sell a bunch of eth coinage there to at least get thru the end of the year (likely bottoming)
also, get the head count down from 75 lol … 75 people !
dragonfly aint the only game in town
Had a similar pov on a $5m run rate for operating expenses, $15m pushes it to 2000 ETH breakeven
The DAO should start by cutting expenses and headcount, if that’s not enough, make a call for VCs, funds, accredited investors, retail. Why was all of this done behind closed doors?
If Dragonfly plans to hold for many years, they shouldn’t have any issue agreeing to a lockup. They were in the first treasury diversification and couldn’t list a single thing they helped with, except “strategic calls and specific requests”, which was the whole point of the first round. Now all of a sudden they are looking forward to being more active if this passes…
Snapshot vote ‘Treasury Diversification #2 - DragonFly’ has been created!
Please, cast your votes!
Ends on: 25 Jul 22 19:00 UTC
Here is an alternative for the fund raise.
Create a series of NFT with 100 items. Each item represents 100K $LDO that can be claimed from treasury 3 months after the item was sold.
Quarterly sold 25 items on OpenSea via dutch auction mechanism.
The NFT sales can be paused before each round if the income can fully cover the expenses, or we have other better alternatives.
Give everyone a fair chance to participate in the fund raise event.
Somehow create a future for $LDO price discovery.
More flexible than sale 10MM $LDO in a single deal.
This has not been decided yet. The reason for not having a fully open public and premissionless sale has been addressed in my earlier response. Speed and uncertainty of the market. If we wait for 100% buy in from everyone, and a full public sale process and ETH or LDO drop significantly the whole thing is moot.
Who is the penultimate person or entity that is best in class and can buy $10M relatively quickly? I have been fielding meetings non-stop to try to find the local best I can in a very short window.
If the community votes for a lock up there will be a mandatory lock up. If the complaint is current LDO holder distribution, again what is your suggestion? One voice, one vote? Use stETH? That takes more time.
To reiterate, we are not perfect, but at the same time, we have built the best liquid staking protocol on the market. Hindsight is 20/20 when self reflecting and we can either continue to improve and get better or give up.
This snapshot is focused only on the 1% allocation to DragonFly and whether to add a lock up, keep the deal as it is or hold and work on a better solution.
The other 1% of the sale will be determined after this vote for simplicity, focus and speed of execution.
who the fuck writes these. the options should be “keep as listed, no lockup” or “no to dragonfly”.
they said they cant physically do a deal with lockup bc of they way their entity is structured, so lets honor that.
dragonfly said they cant do a lockup.
“its not possible, even thought its a totally normal thing in this industry” dragonfly said.
ok well great, its a 2 option snapshot then. “deal as listed, no lockup” or “no to dragonfly, good riddance”.
where are you coming up with this 1 year bullshit if they cant even do that deal?
secondaries cant be dumped on the public markets if the company is still private. so it really is not similar imo
I wrote those and Snapshot has a hard character limit. I didn’t have LDO on my wallet while mobile so Zuzu helped with the actual proposal launch.
DragonFly said, highlighted for ease:
This means it is not impossible, many funds have multiple structures. I cannot transcribe every word of every conversation on the forum.
So if the community thinks this is a non-starter without a lock up, we add a lock up. If Dragon walks then so be it. We now have more data to improve the proposal from the feedback.