This article has been republished with permission from Binance News.
According to Cointelegraph, decentralized liquid staking protocol Lido Finance has decided to cease operations on the Solana blockchain after a community vote in Lido’s decentralized autonomous organization. The proposal to sunset Lido on Solana was first put forward by Lido’s peer-to-peer team on September 5, citing unsustainable financials and low fees generated by Lido on Solana. Voting began on September 29 and concluded on October 6.
Lido will not be accepting staking requests as of October 16. Voluntary node operator off-boarding will start on November 17, and Lido users will need to unstake on Solana’s frontend by February 4. After this date, unstaking will need to be done using the CLI. The earlier proposal saw Lido seeking $20,000 per month from Lido DAO to support technical maintenance efforts involved with sunsetting operations on Solana over the next five months.
Lido’s P2P team has been working on the Lido on Solana project since acquiring it in March 2022 from Chorus One. Since the takeover, the P2P team has invested about $700,000 into Lido on Solana and made $220,000 in revenue, resulting in a net loss of $484,000, according to the author of the proposal. The alternative in the September 5 proposal was to provide more funding to Solana from Lido DAO; however, 65 million (92.7%) of the 70.1 million LDO tokens (voted by token holders) were in favor of sunsetting operations on Solana instead, according to open-source voting platform Snapshot. Lido confirmed that staked-Solana (stSOL) token holders will continue to receive network rewards throughout the sunsetting process. Lido’s staking services are now only supported on Ethereum and Polygon, where $14 billion and $80 million are staked, respectively, according to Lido’s website.