Protocol for decentralised liquid staking Following a vote among the community members of Lido’s decentralised autonomous organisation, Lido Finance has opted to stop operating on the Solana blockchain. On September 5, Lido’s peer-to-peer team first suggested that Lido on Solana be shut down, citing the service’s weak revenue and unsustainable financials. The voting period ran from September 29 through October 6.
As of October 16, Lido will no longer accept staking requests. Beginning on November 17, voluntary node operator off-boarding will begin, and Lido users must unstake on the Solana frontend by February 4. After this date, the CLI must be used for unstaking. In a previous proposal, Lido asked Lido DAO for $20,000 per month to help with technological upkeep as Solana operations are shut down over the course of the next five months.
Since purchasing the Lido on Solana project from Chorus One in March 2022, Lido’s P2P team has been working on it. According to the author of the article, the P2P team has invested nearly $700,000 in Lido on Solana since the takeover and generated $220,000 in revenue, resulting in a net loss of $484,000.According to open-source voting platform Snapshot, 65 million (92.7%) of the 70.1 million LDO tokens (voted by token holders) were in favour of sunsetting activities on Solana as opposed to the alternative in the September 5 proposal, which was to provide extra funds to Solana via Lido DAO. Holders of staked-Solana (stSOL) tokens would continue to receive network benefits during the sunsetting process, according to Lido. According to Lido’s website, its staking services are now only offered on Polygon and Ethereum, where $14 billion and $80 million have been staked, respectively.
