Velora DAO Abandons Decentralized Model in Favor of Consolidated Governance

Velora DAO has made a significant shift in its governance structure by voting to wind down its operations. The proposal, known as PIP-77, was approved with 65.8% of voters in favor and 16.78% against the change. This decision marks a turning point for Velora, which had previously been operating under a decentralized autonomous organization (DAO) model.

The wind-down plan transfers approximately $415,000 from the DAO treasury to Laita Labs, along with future revenue generated by the protocol. The proposal also discontinues the 20% protocol fee routing and retires the staking program, allowing holders to withdraw their funds immediately.

Per the new governance structure, VLR will become a governance-only token, while protocol operations, infrastructure, and revenue flow exclusively through Laita Labs. This move aims to simplify governance and consolidate control under a single entity, addressing issues that have plagued other DeFi protocols.