Following a community vote, Liquid Staking Solution Lido concludes Solana Staking.

Following a community vote, Liquid Staking Solution Lido concludes Solana Staking.

Following a vote by the DAO community to sunset the Lido on Solana protocol, Lido Finance, a decentralized liquid staking platform, is pulling out of the Solana (SOL) market.

The Solana staking product shutdown procedure will "begin shortly" phasing out, according to Lido's blog post from Monday.

The best course of action was determined to wind down Lido on Solana following extensive deliberation and a vote among Lido DAO members. ".

65 million Lido (LDO) holders cast votes in support of sunsetting the Solana blockchain, according to the results of the community poll conducted on Snapshot. Just 51.1 million people agreed to fund the protocol that would keep Lido operating on Solana.

According to the snapshot post, the Solana operations will likely come to an end completely by February 2024.

A 100k DAI budget would be set aside to cover the sunset costs, the platform stated, "similar to the sunset of Lido on Kusama and Lido on Polkadot.".

Case Study of Financial Assistance.

The action was taken in response to a proposal submitted by the Lido on Solana development team, which outlined the difficulties and requested funding from Lido DAO in order to maintain Lido on Solana.

Citing unsustainable financials and the low amount of fees generated by Lido on the Solana protocol, the P2P contributor has requested 1.5 million DAI tokens to fund a full year of operations.

The team reported that P2P invested roughly $700,000 in Lido on the Solana project in 2022–2023, "mostly in development and support.". The proposal also stated that there were more losses—$484,000 in total—than profits—roughly $220,000.

Because of this, the team concluded that in the current Solana market, gaining even 2 percent of the market share in 2023–2024 seems unlikely.

In light of the aforementioned data, we are requesting financial assistance from Lido DAO in order to continue our work and advance Lido on Solana. ".

In case Lido DAO's funding isn't available, the team suggested using Solana's sunset procedure.

But the Solana development team was confident that Lido on Solana could be a key factor in its expansion and that the DAO community would support the suggested funding in unison.

The team predicted that "with the proposed financial backing, we can not only sustain our operations but also innovate, grow, and add more value to the Lido DAO and the larger Solana ecosystem."

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