LidoDAO Records Overwhelming 92% Votes To Exit The Solana Network

In a not too long ago 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 Reduce Ties With The Solana Community Following Group Vote

The proposal was first launched by Lido on Solana’s peer-to-peer (P2P) crew on September 5, as a result of monetary limitations. Following the introduction, the voting program started on September 29, 2023, and was concluded per week in a while October 6. 

The P2P crew accountable for the event of Lido on the Solana Network supplied the group 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 crew, Lido requested that LidoDAO present $20,000 monthly to fund technical upkeep actions associated to sunsetting operations on Solana over the next 5 months. The proposal additionally expressed worries about not having the ability to meet targets within the subsequent 12 months because of the difficult market situations.

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

Based on Yuri Mediakov, the P2P crew invested a complete of $700,000 in Lido on the Solana venture to construct and assist the product up to now 12 months however ended up making $220,000 in income, leading to a internet lack of $484,000. Subsequently, with a purpose to assist the venture for the following 12 months, the crew 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 needed one to make regardless of how tough it was:

While this resolution 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.

Based on 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 means 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 providers are actually solely supported on Ethereum and Polygon.

The P2P crew has been engaged on Lido’s Solana venture since buying it from Refrain One in March final 12 months.

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

Featured picture from Exodus Pockets, chart from Tradingview.com