Lido to Sunset Operations on the Solana Blockchain: Details
- Lido has decided to sunset operations on the Solana blockchain.
- The proposal was initially introduced on September 5, and the voting began on September 29.
- The voting ended on October 6, and staking on Solana would be discontinued on October 16.
- The front-end support for the protocol on Solana will conclude on February 4, 2024.
Lido Finance, a prominent decentralized finance (DeFi) protocol, has announced that it will sunset operations on the Solana (SOL) blockchain in the coming months. The decision was taken after a community vote in the protocol’s decentralized autonomous organization. On the other hand, SOL has been one of the best-performing tokens in the past few weeks.
The proposal to sunset Lido on the Solana blockchain was first introduced by the DeFi protocol’s peer-to-peer (P2P) team on September 5. The proposal said that it would be beneficial to cease operations on Solana because of unsustainable financials and the generation of low fees. The voting process began on September 29 and ended on October 6.
“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,” the protocol stated in an October 16 post.
The post also added that P2P Validator and Lido NOM contributors will provide instructions for the process of voluntary off-boarding via the protocol’s community channels. Operators who decide to exit the pool will be able to shut down their nodes following the off-boarding,” noted the post while adding, “Operators who stay will maintain their remaining stake on their nodes.”
Staking on Solana will be discontinued on October 16, and no new staking requests will be accepted. On November 17, voluntary node operator off-boarding will begin, while frontend support for Lido on Solana will conclude on February 4, 2024. After this point, unstaking will only be feasible via the Command Line Interface (CLI).
The protocol also expressed “heartfelt gratitude” to “Solana stakers, builders and ecosystem partners” while adding:
“This decision does not reflect the belief of Lido contributors in the potential and longevity of the Solana ecosystem as a whole.”
According to mediakov, the author of the proposal, since the inception of operations on the Solana blockchain, 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.
It is also important to note that the Solana blockchain-based project, Cardinal, sunsetted operations in June 2023.
On the other hand, the adoption of the Solana blockchain is on the rise. Recently, Shopify added Solana Pay to its platform to provide support for USDC payments.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
