Lido Finance, a decentralized liquid stake platform, is ending its Solana (SOL) operations after the DAO community voted to terminate the Lido on Solana protocol.
For Lido’s blog entry On Monday, the closing process for the Solana betting product will “begin shortly” phasing out.
“After much discussion and a vote by the Lido DAO members, it was decided that the best course of action would be to end Lido in Solana.”
In accordance with Voting by the Lido community in Snapshot, 65 million Lido (LDO) holders voted for the fall of the Solana blockchain. Only 5.1 million said yes to funding the protocol to sustain Lido in Solana.
Solana’s full cessation of operations will tentatively end in February 2024, the instant release revealed.
“Similar to Kusama’s Lido Sunset and Polkadot’s Lido, a budget of DAI 100,000 would be allocated to cover the costs of the sunset,” the platform said.
Financial support scenario
The move comes after Lido to Solana’s development team presented a proposal outlining the challenges and financial support needed by Lido DAO to keep Lido in Solana.
The P2P contributor has sought 1.5 million DAI tokens to fund 12 months of operations citing unsustainable finances and the low amount of fees generated by Lido on the Solana protocol.
The team noted that during 2022-2023, P2P invested Lido in the Solana project approximately $700,000, “primarily in development and support.” Losses amounting to $484,000 were incurred more than profits which were about $220,000, the proposal added.
As a result, reaching even 2% market share by 2023-2024 seems unlikely, in Solana’s current market, the team noted.
“In light of the above-mentioned information, we seek the financial support of Lido DAO to sustain our efforts and elevate Lido on Solana to the next level.”
The team proposed the Solana crash process if financial support from Lido DAO is not available.
However, Solana’s development team was optimistic that Lido on Solana could play a pivotal role in its growth and believed that the DAO community would collectively support the proposed financial support.
“With the proposed financial support, we can not only sustain our operations, but also innovate, grow and bring more value to the Lido DAO and the wider Solana ecosystem,” the team anticipated.