Lido To Discontinue Liquid Staking On Solana
The team behind Lido Finance has made the difficult decision to sunset Solana staking following a community DAO vote, where over 90% voted in favor of discontinuing Solana staking. This gradual phase-out of the Lido on Solana project will take place over the next few months.
This decision was primarily driven by financial constraints, making it unsustainable for the team to continue the project. As a result, Lido Finance will no longer accept new staking requests for Solana tokens. Token holders voted overwhelmingly to discontinue the service after extensive discussions on the Lido DAO forum. The decision was officially announced in a blog post by the team on Monday.
According to the blog post, “After extensive DAO forum discussion followed by community vote, the sunsetting of the Lido on Solana protocol was approved by Lido token holders, and the process will begin shortly.”
While this decision was challenging, it was deemed necessary for the broader success of the Lido protocol ecosystem.
The Phase-Out Proposal
The decision to phase out Lido on Solana came after a proposal submitted to the Lido DAO by the development team, P2P Validator, in early September. The proposal outlined the achievements, challenges, and future prospects of Lido on Solana. The DAO was presented with two options: fund the project with $1.5 million to sustain operations or end the Lido on Solana project and take it in a new direction.
The first option required $200,000 every quarter for development, $600,000 per year for marketing, and $100,000 per year for customer support, totaling around $1.5 million over 12 months. The second option, chosen by the community, led to the discontinuation of the project.
SOL Staking Shuts With Immediate Effect
Staking on Solana has been discontinued with immediate effect. Node operators can voluntarily off-board starting from the 17th of November, 2023. However, stSOL token holders will continue to receive rewards during the winding down process. Unstaking through the Lido on the Solana frontend will stop on the 4th of February, 2024. Those missing the deadline must unstake their tokens through the Command Line Interface (CLI).
In closing, Lido Finance expresses gratitude to Solana stakers, builders, and ecosystem partners. Although this marks the end of a chapter, the optimism for the future of Solana remains undiminished.
Lido Finance had previously wound down liquid staking on Polkadot and Kusama as well.
