Decentralized liquid staking protocol Lido Finance has announced the decision to cease operations on the Solana blockchain following a community vote in the Lido decentralized autonomous organization.
The proposal to put the Lido in Solana was presented for the first time. forward by Lido's peer-to-peer team on September 5, citing unsustainable finances and low rates generated by Lido in Solana. Voting began on September 29 and ended a week later, on October 6.
“After extensive discussion on the DAO forum followed by a community vote, Lido token holders approved the demise of the Lido protocol on Solana and the process will begin shortly,” Lido. explained in a post from October 16.
Lido will not accept participation requests after October 16. The node operator's voluntary deregistration will begin on November 17 and Lido users must stop participating in the Solana interface by February 4.
"After this date, withdrawals must be made via the CLI," Lido added.
After an extensive discussion about DAO followed by a community vote, LDO holders approved the closure of Lido in Solana and it will begin shortly.
More information here: https://t.co/MyImL1qpap
- Lido (@LidoFinance) October 16, 2023
In the previous proposal, Lido sought $20,000 per month from Lido DAO to support technical maintenance efforts related to the completion of operations at Solana over the next five months.
Lido's P2P team has been working on the Lido project in Solana since acquiring it in March 2022 from Chorus One.
Since the acquisition, the P2P team has invested about $700,000 in Lido in Solana and earned $220,000 in revenue, resulting in a net loss of $484,000, according to mediakov, the author of the proposal.
The alternative of September 5 proposal was to provide more funds to Solana from the Lido DAO; However, 65 million (92.7%) of the 70.1 million LDO tokens (voted by token holders) were in favor of suspending operations on Solana. according to the open source voting platform Snapshot.
Lido explained that the decision was difficult but necessary:
"While this decision was difficult given the numerous strong relationships throughout the Solana ecosystem, it was considered a necessity for the continued success of the Lido protocol ecosystem as a whole."
Lido confirmed that staked Solana (stSOL) token holders will continue receive network rewards throughout the extinction process.
Related: Lido Finance Reveals 20 Drawdown Events Due to Validator Configuration Issues
Lido Betting Services now only supported on Ethereum and Polygon, where $14 billion and $80 million are staked, respectively, according to the Lido website.
Pool thrown out in Solana on September 8, 2021, when SUN It was priced at $189, a drop of 87% from its current price of $24, according to CoinGecko.
Despite the news, SOL is up 8.6% in the last 24 hours.
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