Lido DAO’s Governance Token LDO Rallies as it Weighs Proposal on $30M Ether Stake
The governance token LDO offered by the decentralized autonomous organization (DAO) rallied 10% following the entity’s February 14 proposal on whether to dispose of or stake the ether valued at $30 million within its treasury.
Proposals on Staked Ether Fuels LDO Rally
The lead provider of Ethereum staking services using the Lido system issued a vote to allow the community to determine how it handles the $30 million ether in its treasury. The submission of the proposal by Lido’s Steakhouse Financial. The vote tasks the community to consider the four treasury-related suggestions.
The initial proposal involves determining if the DAO should cash either stake or sell the 20304 ether held in the treasury. Also, the vote will consider diversifying the DAO’s stablecoin holdings. Lastly, the vote considers whether the DAO should sell the surplus comprising the staked ether as a source of additional capital to settle operating expenses.
LDO Market Outlook
The news of the four proposals fueled the LDO token by 18% in the early Wednesday trading. While the price level retreated, LDO’s increment hovered around 10%. The uptrend left the LDO token with a 30% monthly gain.
Coinmarketcap data shows that LDO is exchanging hands at press time 0855 UTC at $2.76, which is 7% up in a day. Its daily trading volume spiked by 40%, translating to $380 million. The uptrend is evident in the total market capitalization, with a 7% increment to $2.326 billion.
Kraken Challenges Become a Blessing for LDO
LDO rally started last week following the news that the San Francisco-based crypto exchange Kraken would settle a $30 million fine imposed by US Securities and Exchange Commission (SEC). Also, LDO benefited from the news that the Kraken exchange would terminate crypto staking services within the US.
Ethereum staking involves locking a defined ETH amount for a time to contribute to blockchain security. The staking process earns the ETH holders network rewards. Lido DAO facilitates users to execute non-custodial staking by locking Ethereum in alternative protocols.
Lido DAO Cements Leadership in Staking
The facilitation of non–custodial staking by Lido DAO leaves at the pole of decentralized finance protocols with the majority of total value locked. DeFiLlama data ranks Lido DAO at the lead, closely followed by Maker DAO and Curve Finance. The scrutiny of its data shows its platform has $8.4 billion staked ether.
DAO is setting the pace with a unique proposal seeking approval to donate LDO capped at 22 million to a grant program. The proposal seeks the utilization of the donated LDO within the Token Reward Plan (TRP). TRP will feature a distribution platform for voting LDO tokens over four years to the DAO contributors.
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