How Does a Change in Vega Impact the Value of a Long-Term Put Option Held by a DAO?

Vega measures an option's price sensitivity to changes in the underlying asset's implied volatility. A long-term put option held by a DAO has a high Vega value.

Therefore, an increase in market-implied volatility (Vega increase) will positively impact the put option's value, increasing its premium. Conversely, a drop in volatility will cause the option to lose value.

This means the DAO's hedge becomes more expensive or less valuable when market sentiment becomes calmer.