MNGO from FTX estate vote for Mango Markets buyback proposal

Mango Markets, a Solana-based decentralized exchange, has been thrust back into the public consciousness after the conviction of Avi Eisenberg for market manipulation related to an exploit of the platform.

Amid this attention, governance for Mango Markets has passed a buyback proposal that will benefit a subset of users, specifically those who have participated in governance. This proposal got over the finish line in part thanks to a large voting bloc made up of MNGO tokens recently purchased from the FTX estate.

Several weeks ago, the FTX cold wallet began liquidating SPL tokens, including MNGO.

Following that, a new proposal was submitted to governance, that was narrowly defeated. ‘DonDuala’ shared the text of this proposal in Discord and suggested using money from the Mango Markets Treasury to repurchase MNGO in order to support the currency’s market value.

Some shady Mango DAO dealings.

10 days ago 333m MNGO were bought or moved from the FTX cold storage accounts.

Then 3 days ago a proposal was made for the DAO to buyback $10m worth of tokens.

Then 9 hours ago the 333m tokens were deposited to vote in favour of the proposal.
— HenryE (@Henry_E__) April 11, 2024

The funds that originally came from the FTX estate appear to have passed through a couple of intermediary addresses before being deposited into governance for Mango Markets to vote for these proposals.

After the proposal was defeated, a new proposal was created and shared in Discord by ‘DonDuala’ that made minor changes, including allowing people who deposited but did not participate in governance to participate in the buyback. It also proposed changing the total amount of the buyback.

This proposal narrowly passed, with the largest single voter seeming to be the tokens that trace back to the FTX estate. The subsequent ‘Distribution’ proposal is currently in voting, with significant support for approval.

To summarize, the largest voter in favor of the proposal to use the Mango Treasury to buy MNGO tokens is someone who recently received a massive portion of MNGO from the FTX estate. This liquidity potentially makes it possible for the purchaser of these tokens from the FTX estate to begin to liquidate them.

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