Lido Halts SOL Staking On Solana Due to Lack of Funds

Lido is winding down its Solana Staking service as DAO votes for sunsetting operations due to low revenue and higher maintenance costs.
Lido Halts SOL Staking On Solana Due to Lack of Funds
Lido Halts SOL Staking On Solana Due to Lack of Funds

Due to insufficient revenue generation and unsustainable finance support for its operations, the DeFi staking protool Lido has declared that it will cease operations in Solana.

After a DAO proposal was submitted on September 4 and received support from the community for sunsetting the Solana, Lido responded by taking action. Only 7.2% of voters wanted to keep it going with more funding from the Lido DAO, whereas more than 92% preferred Sunset SOL staking.

The DAO rejected Lido’s P2P team’s request for 1.5 million DAI in funding for a year of Solana staking operations, forcing it to shut down.

According to the community proposal, Lido on Solana, the P2P team, invested around $700k, but only made $220k in revenue from it, incurring a $484k loss.

Lido made solana staking possible in September 2021. It will end after two years on October 16 and no new stakes will be accepted after that point. Up to the conclusion of SOL staking, holders of stSOL will continue to get staking incentives.

On November 17, Lido will start de-boarding Solana nodes, and until February 4, 2024, it plans to wind down all node operations. According to the official announcement, if any staking is still in place after February 4 of next year, it will only be unstaked via CLI.

In spite of the fact that there are many solid relationships throughout the Solana ecosystem, Lido said in a blog post that the move was necessary for the long-term viability of the Lido protocol environment.

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