Lido DAO has decided to terminate its project on the Solana blockchain following a recent community vote. The team behind the Lido on Solana protocol cited financial constraints as the main reason for this decision.
The winding down process is expected to take place gradually over the next few months. Holders of stSOL tokens have been given until February 2024 to unstake their tokens through the Lido on Solana platform.
The decision to discontinue the liquid staking solution on Solana was made after an extensive discussion and voting process within the Lido community. Over 92% of Lido token holders supported the sunsetting of the project, while a little over 7% voted to provide further funding.
The team proposed two options to the community – either to inject $1.5 million into the project for its sustainability or to completely exit the Solana blockchain. Yuri Mediakov of P2P, the team behind Lido on Solana, highlighted the financials, showing a substantial loss incurred despite significant investments.
The sunsetting process will occur in phases, with an immediate halt to staking on Solana and voluntary off-boarding for node operators starting from November 17, 2023. Additionally, stSOL token holders will continue to receive rewards during the winding down phase, but they must unstake their tokens through the Lido on Solana platform by February 4, 2024, to avoid any complications.
Despite the discontinuation of the Lido on Solana project, the team expressed optimism for the future of the broader Lido protocol ecosystem and its commitment to other blockchain networks. Previously, Lido had also ceased its liquid staking operations on Kusama and Polkadot.
This decision marks the end of a significant chapter for Lido on the Solana blockchain, with the team acknowledging the challenges faced and milestones achieved throughout their journey.
