Lido Finance Halts Operations on Solana Following Community Consensus

blockchain.news:

Lido Finance, a decentralized liquid staking protocol, has decided to cease its operations on the Solana blockchain post a unanimous community verdict. This decision came into light on October 16, 2023, after an extensive dialogue and subsequent community voting within the Lido’s decentralized autonomous organization (DAO).

Sunsetting Justification

The cessation, termed as 'sunsetting', was primarily advocated by the peer-to-peer (P2P) team of Lido on September 5, underlining the unsustainable financial model and meager fees generated by Lido on Solana. The voting, which spanned a week, commenced on September 29 and concluded on October 6. The P2P team, having taken over the project in March 2022 from Chorus One, invested around $700,000 into Lido on Solana, generating a revenue of $220,000 which translated to a net loss of $484,000. The proposal put forth highlighted two pathways: either continue the development on Lido on Solana with financial aid from Lido DAO or sunset the operations on Solana. A significant 92.7% of the votes cast were in favor of halting the operations on Solana.

The P2P team elaborated on the scenario by presenting two options to the Lido DAO: to continue the development on Lido on Solana with financial backing from the Lido DAO, or to sunset Lido on Solana. After a rigorous discussion and community voting, a majority of Lido DAO members opted for winding down Lido on Solana.

Impact on Users and Node Operators

Post the sunsetting, Lido will not accept any new staking requests starting October 16. For existing staked Solana (stSOL) token holders, the network rewards will continue throughout the sunsetting process. They will have the opportunity to unstake via the Lido on Solana frontend