Decentralized liquid staking big Lido Finance has determined to cease accepting new solana (SOL) token staking requests after Lido’s LDO token holders unilaterally voted in favor of discontinuing the service.
Staking SOL on Lido will not be out there to new customers, whereas the front-end will not be capable of stake current tokens in February 2024. As of Tuesday, about $55 million value of SOL tokens are locked on Lido. data showsa major decline from the height of $440 million in April 2022.
“After a lot dialogue and a vote by Lido DAO members, it was determined that the perfect plan of action could be to part out Lido on Solana,” Lido Builders said in a message.
“Whereas this choice was troublesome in gentle of the various robust relationships throughout the Solana ecosystem, it was thought of a necessity for the continued success of the broader Lido protocol ecosystem,” the builders added.
Over 92% of the Lido group voted to discontinue the product relatively than selecting to proceed the service, a vote that’s ended on October 5 shows. In discussions main as much as the vote, some group members pointed out that the mentioned high costs by P2P builders to keep up the service has been a degree of rivalry.
DAOs, brief for decentralized autonomous organizations, are a blockchain-based organizational or enterprise kind typically ruled by a local crypto token. Staking refers to locking tokens onto a protocol to assist validate transactions and keep a blockchain community in alternate for rewards.
a proposal floated of P2P Validator, the builders who constructed the product on Lido in early September revealed that that they had suffered losses of over $480,000 over the previous 12 months, in comparison with the $700,000 spent to construct the product. It shared considerations that targets couldn’t be achieved within the coming 12 months, citing troublesome market situations.
“Reaching even 2% of market share by 2023-2024 appears unlikely, particularly within the present Solana market, with none advertising assist and given Lido DAO’s Fee Decision 22 to finish all incentives in Solana,” the proposal stated of the crew.
P2P Validator sought funding from Lido in its proposal to proceed providing the SOL staking product to customers, failing which it must discontinue the product.