Lido Finance is gradually ending its Solana staking services after a community vote with over 90% support for the decision.
The move is driven by financial constraints and will result in the project no longer accepting new Solana staking requests. Lido token holders voted for this change after discussions on the Lido DAO forum.
An examination of the voting results revealed that over 92% of token holders supported sunsetting the Lido on Solana protocol, while 7% voted in favor of providing funding to sustain the project.
The decision to wind down Lido on Solana followed a proposal submitted to the Lido DAO by the development team, P2P Validator, in early September. This proposal outlined both the accomplishments and obstacles faced, presenting two alternatives for the community to consider.
The first option aimed to maintain Lido on Solana by funding the project with $1.5 million, divided into $200,000 every quarter for development, $600,000 annually for marketing, and $100,000 per year for customer support, totaling approximately $1.5 million over a year.
The second option, chosen by the community, involved concluding the Lido on Solana project and embarking on a new direction. However, in the event of this decision, the team requested $20,000 per month from the Lido DAO for technical maintenance over five months, commencing on September 4, 2023.
While the sunsetting process will occur gradually, staking on Solana has been immediately halted. Node operators can voluntarily off-board from November 17, and stSOL token holders will continue to receive rewards during the phase-out.
The Lido Finance team remains optimistic about the future of Solana.
Image Credit: Shutterstock
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