Lido on Solana Project to Wind Down Due to Financial Constraints
The Lido on Solana project will be winding down as the P2P team is unable to sustain it financially. This process will take place over the next few months, and stSOL token holders have until February 2024 to unstake through the Lido on the Solana frontend.
Lido Discontinues Liquid Staking on Solana
Lido has made the decision to cease its liquid staking solution on the Solana blockchain after extensive discussions and a community vote. Over 92% of Lido token holders voted in favor of sunsetting the Lido on Solana protocol. P2P validator, the team behind Lido on Solana, proposed two options to the community: fund the project with $1.5 million or exit the Solana blockchain.
The team invested $700,000 into development and support but only generated $220,000 in revenue, resulting in a loss of $484,000. If the community had chosen to sunset the project, they would have required $20,000 per month from the Lido DAO for technical maintenance for five months.
SOL Staking Stops With Immediate Effect
The sunsetting process will occur in phases, starting with immediate discontinuation of staking on Solana. Node operators can voluntarily off-board starting from November 17, 2023. Rewards will continue for stSOL token holders throughout the winding down process, but unstaking via the Lido on the Solana frontend must be completed by February 4, 2024. After this date, holders will have to unstake through the Command Line Interface (CLI).
In Conclusion
Although winding down Lido on Solana is a difficult decision given the strong relationships in the Solana ecosystem, it is deemed necessary for the success of the broader Lido protocol ecosystem. Lido has also previously discontinued liquid staking operations on Kusama and Polkadot. Despite this development, contributors remain optimistic about the future of Solana.
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