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 method meant to generate returns for members whereas contributing capital to safety providers 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 workforce 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 give a route for XRP holders to make use of DeFi purposes. In an October 6 submit, Flare described Firelight as a approach 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 characteristic 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 arms 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 yr in the past, with the present worth a 63% dip from its $3.65 all-time excessive attained in July 2025.
Governance Adjustments Intention 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 latest 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, help for a number of languages and searchable data.
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 handle inactive wallets that might hinder proposals.
The broader concern was flip neighborhood participation and funding into lasting exercise throughout the XRP Ledger ecosystem. That query additionally arose after XRPL infrastructure workforce Gen3 introduced on August 12 that it will wind down its retail merchandise Aigent.run and AxiomProtocol, citing weak demand and rising infrastructure prices.
The submit 80% of XAO DAO’s XRP Treasury Set for Firelight Deployment appeared first on CryptoPotato.