LidoDAO Records Overwhelming 92% Votes To Exit The Solana Network
October 18 2023 - 9:00AM
NEWSBTC
In a recently 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 Network. LidoDAO Cut Ties With
The Solana Network Following Community Vote The proposal was first
introduced by Lido on Solana’s peer-to-peer (P2P) team on September
5, due to financial limitations. Following the introduction, the
voting program began on September 29, 2023, and was concluded a
week later on October 6. Related Reading: Real Reason Behind
Ethereum Founder’s Massive ETH ‘Sales’ Exposed The P2P team in
charge of the development of Lido on the Solana Network offered the
community members two options in the voting program. These included
the organization leaving the Solana Network, or providing funds to
the organization to sustain its operations on the Solana Network.
In the proposal by the P2P team, Lido requested that LidoDAO
provide $20,000 per month to fund technical maintenance activities
related to sunsetting operations on Solana over the following five
months. The proposal also expressed worries about not being able to
meet goals in the next year due to the challenging market
conditions. “Achieving even 2% of the market share in 2023-2024
seems improbable, particularly in the current Solana market,
without any marketing assistance and given Lido DAO’s committee
resolution 22 to discontinue all incentives in Solana,” the team’s
proposal stated. According to Yuri Mediakov, the P2P team invested
a total of $700,000 in Lido on the Solana project to build and
support the product in the past year but ended up making $220,000
in revenue, resulting in a net loss of $484,000. Therefore, in
order to support the project for the next 12 months, the team would
need around $1.5 million. However, at the end of the vote, over 65
million (92.7%) of LDO tokens (voted by token holders) were in
favor of sunsetting operations on Solana Network. Meanwhile, 5.1
million (7.2%) of LDO tokens voted in favor of providing funds to
the organization to continue its operation on the Solana Network.
The total number of Lido (LDO) tokens concluded in the vote was
70.1 million LDO tokens. The organization highlighted in an excerpt
that the decision was a necessary one to make despite how difficult
it was: Whilst this decision was difficult in the face of numerous
strong relationships across the Solana ecosystem, it was deemed a
necessity for the continued success of the broader Lido protocol
ecosystem. Related Reading: Shiba Inu Whale Moves $32.4 Million In
SHIB, Large Sell Incoming? According to LidoDAO, the organization
will cease accepting staking requests as of October 16, while users
will have to unstake on Solana’s frontend by February 4, 2024.
Failure to unstake before the deadline will result in unstaking
through the Command Line Interface (CLI). In addition, Voluntary
node operator off-boarding will commence on November 17, 2023.
Nonetheless, staked Solana (stSOL) token holders are still expected
to receive rewards during the sunsetting process. However, Lido’s
staking services are now solely supported on Ethereum and Polygon.
The P2P team has been working on Lido’s Solana project since
acquiring it from Chorus One in March last year. LDO falls to $1.5
| Source: LDOUSDT on Tradingview.com Featured image from Exodus
Wallet, chart from Tradingview.com
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