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Following Low Fees, Lido on Solana's Closure Was Considered ‘Necessary’

2023-10-17 16:24:45

Two of the key causes of the discontinuing were Lido on Solana's inadequate revenue and unstable financials.

Source: docs.solana.lido.fi


Lido, the mechanism for decentralized liquid staking, responded to an open vote inside Lido's decentralized independent business that Lido Finance has declared its intention to discontinue activities on the Solana blockchain. On September 5, Lido's peer-to-peer staff first suggested that Lido on Solana be shut down, citing the service's weak revenue and unstable financials. The voting period started on September 29 and ended a week later, on October 6.


The discontinuation of the Lido on Solana system had been accepted by Lido token holders following lengthy DAO forum debate accompanied by public vote, and the procedure will start shortly, Lido stated in an announcement on October 16. As of October 16, Lido will no longer take staking applications. On Nov. 17, optional node administrator off-boarding will start, and by Feb. 4, Lido users must unstake on Solana's platform. After that time, unstaking will have to be performed via the CLI.


In a previous suggestion, Lido asked Lido DAO for $20,000 every month to help with technological upkeep as Solana activities are shut down over the course of the next five months.Since purchasing the Lido on Solana initiative of Chorus One in March 2022, Lido's P2P crew have been engaged with it. Based on the proposal's writer, mediakov, the P2P group put nearly $700,000 into Lido on Solana and earned $220,000 in earnings, leading to a net loss of $484,000.


As reported by open-source polling system Snapshot, 65 million (92.7%) of the 70.1 million LDO coins (voted by token holders) were in support of discontinuing activities on Solana as opposed to the option in the Sept. 5 suggestion, which was to send extra funds to Solana via Lido DAO. Owners of staked-Solana (stSOL) tokens are going to continue getting benefits from the network during the discontinuing management, according to Lido.


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