Lido on Solana decides to cease operations amid financial strain

Lido on Solana, a prominent liquid staking protocol, is set to conclude its operations. The team announced the decision following a comprehensive DAO consultation and subsequent community vote on October 16, 2023. Financial hurdles primarily influenced this outcome, as the P2P team faced sustainability issues.

Overwhelming support emerged for the closure during the voting process. Data reveals that 92% of Lido token holders favored the project’s termination. In contrast, a meager 7% backed continued financial infusion.

P2P validator spearheaded Lido on Solana’s development, offering the community a stark choice. They could inject $1.5 million for ongoing operations or entirely retract from the Solana blockchain. Yuri Mediakov, a P2P representative, detailed the financial aspects, underscoring a significant $484,000 loss despite a $700,000 investment.

The team also outlined a sunsetting roadmap, requiring a modest $20,000 monthly from the Lido DAO. This support would facilitate technical maintenance for five months from September 4, 2023.

The official statement confirmed the daunting decision to cease Lido on Solana. The team emphasized the difficulty of this resolution, given their deep-rooted connections within the Solana network. However, they acknowledged this step as crucial for the broader Lido protocol ecosystem’s prosperity.

The dismantling procedure will unfurl gradually. Effective immediately, staking on Solana will halt. Additionally, node operators will initiate their optional withdrawal from November 17, 2023. Despite these changes, stSOL token holders will still accrue rewards during this transition.

Nevertheless, a critical deadline looms. Unstaking through the Lido on Solana interface must occur by February 4, 2024. Latecomers face a more technical process, necessitating CLI interactions.

The team reminisced about their journey, highlighting the significant achievements and hurdles. Despite this phase ending, their confidence in Solana’s future stands unwavering.

This development mirrors Lido’s previous strategy, having terminated similar operations on Kusama and Polkadot. It marks a cautious approach, reflecting the volatile nature of blockchain endeavors.