XAO DAO co-founder Santiago Velez introduced that proposal 66 had handed, authorizing the decentralized autonomous group to deploy 80% of its XRP treasury into Firelight, a DeFi protocol centered on decentralized insurance coverage and yield.
The choice would put a big share of the DAO’s XRP holdings to work in a technique meant to generate returns for members whereas contributing capital to safety companies for decentralized finance.
XAO DAO Vote Approves XRP Deployment to Firelight
In his announcement, Velez described the proposal as, to his data, the primary time a DAO had deployed treasury funds right into a multichain DeFi technique combining decentralized insurance coverage with yield era.
He thanked co-manager Fabio Marzella, Flare Networks co-founder Hugo Philion, and the Flare crew for creating the Flare Sensible Accounts expertise, in addition to Firelight for the chance.
The plan connects XRP with Firelight by means of Flare Sensible Accounts, which offer a route for XRP holders to make use of DeFi purposes. In an October 6 submit, Flare described Firelight as a technique to put XRP behind a safety layer for DeFi with a single XRPL signature.
Firelight posted the identical day that anybody deploying XRP by means of the function ought to join a supported XRPL pockets and select to mint and deposit FXRP into the Firelight vault, including: “So bullish on this.”
In the meantime, XRP itself was altering palms at $1.34 on the time of writing, having barely shifted in 24 hours however dropping almost 4% of its worth within the final seven days and over 11% throughout one month. It’s also greater than 44% decrease than the place it was a 12 months in the past, with the present worth a 63% dip from its $3.65 all-time excessive attained in July 2025.
Governance Modifications Purpose to Broaden Group Participation
The treasury vote follows a wider push to enhance how XAO DAO members participate in choices. In an October 22 replace, the group introduced that a number of proposals had handed in current weeks and launched a neighborhood discussion board.
Marzella additionally outlined updates to the governance app, together with proposal administration, dialogue instruments, XRP and RLUSD donation monitoring, assist for a number of languages and searchable information.
As CryptoPotato reported in August, XAO DAO was making ready governance modifications that included pockets delegation, revised quorum guidelines and neighborhood mini-grants. Delegation would let members assign their voting energy to others, whereas modifications to quorum guidelines had been meant to deal with inactive wallets that would impede proposals.
The broader concern was the best way to flip neighborhood participation and funding into lasting exercise throughout the XRP Ledger ecosystem. That query additionally arose after XRPL infrastructure crew Gen3 introduced on August 12 that it might wind down its retail merchandise Aigent.run and AxiomProtocol, citing weak demand and rising infrastructure prices.
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