In a just lately concluded voting program, it was revealed that over 92% of LidoDAO members (Lido token holders) of the decentralized liquid staking protocol Lido Finance, voted in favor of Lido ceasing its operations on the Solana Community.

LidoDAO Lower Ties With The Solana Community Following Group Vote

The proposal was first launched by Lido on Solana’s peer-to-peer (P2P) workforce on September 5, attributable to monetary limitations. Following the introduction, the voting program started on September 29, 2023, and was concluded per week afterward October 6. 

The P2P workforce in command of the event of Lido on the Solana Community provided the neighborhood members two choices within the voting program. These included the group leaving the Solana Community, or offering funds to the group to maintain its operations on the Solana Community.

Within the proposal by the P2P workforce, Lido requested that LidoDAO present $20,000 per thirty days to fund technical upkeep actions associated to sunsetting operations on Solana over the next 5 months. The proposal additionally expressed worries about not with the ability to meet targets within the subsequent yr as a result of difficult market situations.

“Attaining even 2% of the market share in 2023-2024 appears unbelievable, significantly within the present Solana market, with none advertising help and given Lido DAO’s committee decision 22 to discontinue all incentives in Solana,” the workforce’s proposal said.

In response to Yuri Mediakov, the P2P workforce invested a complete of $700,000 in Lido on the Solana mission to construct and help the product prior to now yr however ended up making $220,000 in income, leading to a web lack of $484,000. Subsequently, as a way to help the mission for the following 12 months, the workforce would want round $1.5 million.

Nonetheless, on the finish of the vote, over 65 million (92.7%) of LDO tokens (voted by token holders) had been in favor of sunsetting operations on Solana Community. In the meantime, 5.1 million (7.2%) of LDO tokens voted in favor of offering funds to the group to proceed its operation on the Solana Community. The full variety of Lido (LDO) tokens concluded within the vote was 70.1 million LDO tokens.

The group highlighted in an excerpt that the choice was a mandatory one to make regardless of how tough it was:

While this determination was tough within the face of quite a few robust relationships throughout the Solana ecosystem, it was deemed a necessity for the continued success of the broader Lido protocol ecosystem.

In response to LidoDAO, the group will stop accepting staking requests as of October 16, whereas customers should unstake on Solana’s frontend by February 4, 2024. Failure to unstake earlier than the deadline will lead to unstaking by way of the Command Line Interface (CLI). As well as, Voluntary node operator off-boarding will begin on November 17, 2023.

Nonetheless, staked Solana (stSOL) token holders are nonetheless anticipated to obtain rewards through the sunsetting course of. Nonetheless, Lido’s staking companies are actually solely supported on Ethereum and Polygon.

The P2P workforce has been engaged on Lido’s Solana mission since buying it from Refrain One in March final yr.

LDO falls to $1.5 | Supply: LDOUSDT on Tradingview.com