This article has been republished with permission from Binance News.
According to CryptoPotato, the Lido on Solana project will be winding down due to financial constraints faced by the P2P team. The sunsetting process will take place over the coming months, with stSOL token holders given until February 2024 to unstake through the Lido on the Solana frontend.
The decision to discontinue Lido’s liquid staking solution on the Solana blockchain came after an extensive DAO discussion and community vote. Over 92% of Lido token holders voted in favor of sunsetting the Lido on Solana protocol, while just over 7% voted to provide funding to the project. The P2P validator team had previously proposed two scenarios to community members: fund the project with $1.5 million to sustain operations or exit the Solana blockchain.
Yuri Mediakov of P2P listed project and business developments, along with profit and losses, stating that the team invested about $700,000 into development and support but received a revenue of $220,000, resulting in a loss of $484,000. The proposal also mentioned that if the community voted for the sunsetting option, the team would need $20,000 monthly in support from the Lido DAO for technical maintenance for five months, starting from September 4, 2023.
The sunsetting process will occur in phases, with staking on Solana discontinued immediately, and node operators can begin voluntary off-boarding from November 17, 2023. stSOL token holders will continue to receive rewards throughout the winding down process, but unstaking via the Lido on the Solana frontend will stop by February 4, 2024. Holders who miss the deadline will have to unstake through the Command Line Interface (CLI).
In addition to its exit from the Solana blockchain, Lido also previously wound down liquid staking operations on Kusama and Polkadot.