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After paying low fees, Lido at Solana looks like a necessity, the company says. The unstable financial situation and the low production fees generated by Lido in Solana were the two main reasons for the sunset. To receive new news in the field of crypto and artificial intelligence, follow Pooyan Music site. What is Lido and why it is important for Solana?
Liquidity decentralized protocol Lido Finance has announced its decision to cease operations on the Solana blockchain. This was after a community vote in the Lido Independent Decentralized Organization.
Solana’s Lido Sunset Offer was first introduced by Lido’s peer-to-peer (P2P) team on September 5th. This presentation was based on the unstable financial situation and low production fees by Lido in Solana.
In a post on October 16, Lido explained: “After extensive discussion by the DAO community and following a community vote, the sunset of the Lido on Solana protocol has been approved by Lido token holders and the process will begin soon.
Lido will no longer accept betting requests from October 16. Voluntary node operator exit starts on November 17th and Lido users have until February 4th to participate in the Solana frontend. Lido added: After this date, the removal of the bet must be done using the CLI.
In the previous proposal, Lido sought $20,000 per month from Lido DAO to support technical maintenance efforts related to Sunset operations at Solana over the next five months. Lido’s P2P team has been working on Lido’s Solana project since acquiring it from Chorus One in March 2022.
Since the takeover, the P2P team has invested about $700,000 in Lido at Solana and earned $220,000 in revenue, resulting in a net loss of $484,000, said proposal writer Medyakov.
The September 5 proposed alternative was to provide more funding to Solana from the Lido DAO. However, 65 million (92.7%) of the 70.1 million LDO tokens instead favored Operation Sunset at Solana, according to the open-source voting platform Snapshot.
Lido explained that the decision was difficult but necessary: while the decision was difficult in the face of the many strong relationships across the Solana ecosystem, it was deemed necessary for the continued success of the Lido Protocol ecosystem.
Lido confirmed that Solana (stSOL) token holders will continue to receive network rewards during the sunset process. Lido’s staking services are now only supported on Ethereum and Polygon, where $14 billion and $80 million were invested, respectively, according to Lido’s website.
Lido launched on Solana on September 8, 2021, when SOL Solana was priced at $189, according to CoinGecko, an 87% drop from its current price of $24. Despite the news, SOL rose 8.6% in the last 24 hours.
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