Decentralized liquid staking protocol Lido Finance has announced a decision to cease operations on the Solana blockchain following a community vote in Lido\u2019s decentralized autonomous organization.<\/p>\n
The proposal to sunset Lido on Solana was first put forward<\/a> by Lido\u2019s peer-to-peer team on Sept. 5, citing unsustainable financials and low fees generated by Lido on Solana. Voting commenced on Sept. 29 and finished a week later on Oct. 6.<\/p>\n \u201cAfter extensive DAO forum discussion followed by community vote, the sunsetting of the Lido on Solana protocol was approved by Lido token holders and the process will begin shortly,\u201d Lido explained<\/a> in an Oct. 16 post.<\/p>\n Lido will not be accepting staking requests as of Oct. 16. Voluntary node operator off-boarding will begin on Nov. 17 and Lido users will need to unstake on Solana\u2019s frontend by Feb. 4.<\/p>\n \u201cAfter this date, unstaking will need to be done using the CLI,\u201d Lido added.<\/p>\n After extensive DAO discussion followed by community vote, the sunsetting of Lido on Solana was approved by LDO holders and will begin shortly.<\/p>\n More information here: https:\/\/t.co\/MyImL1qpap<\/a><\/p>\n \u2014 Lido (@LidoFinance) October 16, 2023<\/a><\/p><\/blockquote>\n The earlier proposal saw Lido seeking $20,000 per month from Lido DAO to support technical maintenance efforts involved with sunsetting operations on Solana over the next five months.<\/p>\n Lido\u2019s P2P team has been working on the Lido on Solana project since acquiring it in March 2022 from Chorus One.<\/p>\n Since the takeover, the P2P team has invested about $700,000 into Lido on Solana and made $220,000 in revenue, resulting in a net loss of $484,000, according to the mediakov, the author of the proposal.<\/p>\n The alternative in the Sept. 5 proposal<\/a> was to provide more funding to Solana from Lido DAO \u2014 however 65 million (92.7%) of the 70.1 million LDO tokens (voted by token holders) were in favor of sunsetting operations on Solana instead, according<\/a> to open-source voting platform Snapshot. <\/p>\n Lido explained the decision was a difficult but necessary one to make:<\/p>\n \u201cWhilst this decision was difficult in the face of numerous strong relationships across the Solana ecosystem, it was deemed a necessity for the continued success of the broader Lido protocol ecosystem.\u201d<\/p><\/blockquote>\n Lido confirmed that staked-Solana (stSOL) token holders will continue to receive network rewards<\/a> throughout the sunsetting process.<\/p>\n Related: <\/em><\/strong>Lido Finance discloses 20 slashing events due to validator config issues <\/em><\/strong><\/a><\/p>\n Lido\u2019s staking services<\/a> are now only supported on Ethereum and Polygon, where $14 billion and $80 million are staked, respectively, according<\/a> to Lido\u2019s website.<\/p>\n Lido launched<\/a> on Solana on Sept. 8, 2021, when SOL<\/a> was priced at $189 \u2014 an 87% fall from its current price of $24, according<\/a> to CoinGecko.<\/p>\n\n
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