On July 5, Tornado Cash, a transaction privacy platform, was rejected in their official launched website poll voting to diversify its treasury assets into Wrapped Ether (a token pegged to Ether).
According to the Tornado Cash website:
“If this proposal is accepted, 50,000 TORN-v-1 will be sold against WETH(Wrapped Ether) at a 20% discount, during a 14 days 1INCH limit order crowdsale to diversify the governance treasury (minimum TORN buying price is fixed at 0.008 ETH). TORN-v-1 is a vesting TORN token that must be transferred to governance. After TORN-v-1 being transferred into the governance contract, 1 TORN-v-1 is directly transformed into 1 TORN, giving access to the staking yield and the vote. Then, the investor will have to wait for 365 days to be able to unstake.”
They further add:
“This is not just a simple sale. Sold TORN will be locked in governance, which means that there is no selling pressure at the moment. It’s a good way to attract strategic partners, so they can help our governance funds to diversify by buying TORN at a discount, while being able to vote and earn yield.”
The tokens cannot be sold since they have been vested, but they may be used to vote on governance decisions. The bidders that were involved in their sale would have been able to participate in the entire governance process.
Involvement of famous participants:
- Liquid staking giant Lido Finance: selling $17 million in ETH to support the firm through the present market conditions.
- Stablecoin issuer Fei Protocol: planning to sell some of its treasury tokens.
- MakerDAO: plans to invest $500 million of its treasury into stocks.
Additionally, the tokens would have been locked up in governance for one year before being exchanged for TORN coins at a 1:1 ratio. According to the website, the coin buyers are able to earn rewards by staking during the vesting period.