Lido on Solana wind down ‘deemed a necessity’ after low fees, says staking firm

Decentralized liquid staking procedure Lido Finance has revealed a decision to cease operations on the Solana blockchain following a community vote in Lidos decentralized autonomous organization.The proposal to sunset Lido on Solana was first advanced by Lidos peer-to-peer team on Sept. 5, mentioning low charges and unsustainable financials generated by Lido on Solana. Voting began on Sept. 29 and completed a week later on Oct. 6.” After comprehensive DAO forum conversation followed by community vote, the sunsetting of the Lido on Solana procedure was authorized by Lido token holders and the procedure will begin quickly,” Lido described in an Oct. 16 post.Lido will not be accepting staking requests as of Oct. 16. Voluntary node operator off-boarding will begin on Nov. 17 and Lido users will need to unstake on Solanas frontend by Feb. 4.” After this date, unstaking will require to be done using the CLI,” Lido added.After substantial DAO conversation followed by community vote, the sunsetting of Lido on Solana was authorized by LDO holders and will begin shortly.More information here: https://t.co/MyImL1qpap— Lido (@LidoFinance) October 16, 2023

The earlier proposition saw Lido seeking $20,000 each month from Lido DAO to support technical maintenance efforts involved with sunsetting operations on Solana over the next 5 months.Lidos declaration on terminating services on Solana. Source: Lido.fiLidos P2P group has actually been working on the Lido on Solana project because obtaining 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 earnings, resulting in a net loss of $484,000, according to the mediakov, the author of the proposal.The alternative in the Sept. 5 proposition was to supply more funding to Solana from Lido DAO– however 65 million (92.7%) of the 70.1 million LDO tokens (voted by token holders) favored sunsetting operations on Solana instead, according to open-source voting platform Snapshot. Lido described the choice was a essential but challenging one to make:” Whilst this decision was challenging in the face of various strong relationships throughout the Solana ecosystem, it was deemed a necessity for the continued success of the wider Lido protocol ecosystem.” Lido confirmed that staked-Solana (stSOL) token holders will continue to receive network rewards throughout the sunsetting process.Related: Lido Finance discloses 20 slashing occasions due to validator config issues Lidos staking services are now only supported on Ethereum and Polygon, where $14 billion and $80 million are staked, respectively, according to Lidos website.Lido introduced on Solana on Sept. 8, 2021, when SOL was priced at $189– an 87% fall from its existing price of $24, according to CoinGecko.Despite the news, SOL is up 8.6% over the last 24 hours.SOLs price movements over the last 7 days. Source: CoinGeckoMagazine: DeFi Dad, Hall of Flame: Ethereum is woefully underestimated however growing more powerful