LidoDAO Members Vote to End Operations on Solana Network
A recent voting program conducted by Lido Finance, the decentralized liquid staking protocol, revealed that over 92% of LidoDAO members (Lido token holders) voted in favor of ceasing operations on the Solana Network. The proposal was introduced by Lido on Solana’s peer-to-peer team due to financial limitations.
The Voting Program
The voting program, which began on September 29 and concluded on October 6, offered community members two options. They could either choose for the organization to leave the Solana Network or provide funds to sustain its operations on the network.
Lido’s Funding Proposal
In the proposal put forth by the peer-to-peer team, Lido requested $20,000 per month from LidoDAO to fund technical maintenance activities related to sunsetting operations on Solana. The team expressed concerns about meeting goals in the next year due to challenging market conditions.
The Results
At the end of the vote, 92.7% of LDO tokens voted in favor of sunsetting operations on Solana Network, while 7.2% voted in favor of providing funds for continued operation. The decision was considered necessary for the success of the broader Lido protocol ecosystem.
Sunset Process and Future Operations
LidoDAO will stop accepting staking requests on October 16 and users must unstake their assets by February 4, 2024. Staked Solana token holders will still receive rewards during the sunsetting process. However, Lido’s staking services will now solely be supported on Ethereum and Polygon networks.
Closing Thoughts
The decision to end operations on the Solana Network was a difficult one for LidoDAO, but it was deemed necessary for the overall success of the protocol. While the organization had strong relationships within the Solana ecosystem, focusing on Ethereum and Polygon will allow Lido to better serve its users and navigate current market challenges.
Source: Lido Voting Program
Hot Take: LidoDAO Prioritizes Adaptation and Growth in Exiting Solana
LidoDAO’s decision to end operations on the Solana Network highlights their commitment to adapting to market conditions and prioritizing growth. While the move may have been challenging, it ensures that Lido can focus its resources on supporting staking services on Ethereum and Polygon, where it has a stronger presence. By making this strategic shift, LidoDAO aims to continue providing reliable and efficient staking solutions to its users while navigating the ever-changing crypto landscape.
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