Lido Finance Ends Solana Operations After DAO Vote
Lido Finance, a decentralized liquid staking platform, has decided to terminate its operations on the Solana blockchain. This decision came after a vote by the Lido DAO community in favor of sunsetting the Lido on Solana protocol. The process of winding down the Solana staking product will begin shortly, according to a blog post by Lido.
Voting Results and Timeline
65 million Lido (LDO) holders supported the decision to sunset the Solana blockchain, while only 5.1 million voted in favor of providing funding to sustain Lido on Solana, as per the community voting on Snapshot. The complete cessation of Solana operations is expected to be finalized by February 2024.
Financial Challenges and Support Request
The development team behind Lido on Solana presented a proposal outlining the financial difficulties they faced and sought support from Lido DAO. They requested 1.5 million DAI tokens to fund 12 months of operations due to unsustainable financials and low fee generation. The team highlighted losses exceeding profits during the period of 2022-2023, making it unlikely to achieve significant market share in the future.
Sunset Process and Optimism
If financial support from Lido DAO is not available, the team proposed a sunset process for Solana. However, they expressed optimism that with the proposed financial backing, they could continue their operations, innovate, contribute more value to the Lido DAO, and support the growth of the broader Solana ecosystem.
Hot Take: Decision Reflects Pragmatic Approach for Sustainability
The decision to end operations on Solana demonstrates a pragmatic approach by Lido Finance in ensuring long-term sustainability. By assessing the financial challenges and market conditions, the DAO community made a collective decision that aligns with the best interests of Lido Finance and its stakeholders. While this may be disappointing for Solana enthusiasts, it showcases the importance of adaptability and strategic decision-making in the dynamic world of decentralized finance.
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