The Decision to Depart from Solana

In a move that’s sending waves through the DeFi ecosystem, Lido Finance recently announced its decision to discontinue operations on the Solana blockchain. This decision follows a community vote within Lido’s decentralized autonomous organization (DAO). It seems the financials just didn’t add up, leading the team to conclude that Solana wasn’t their golden ticket anymore.

Timeline of Events

• September 5: Proposal to sunset Lido on Solana proposed, citing unsustainable finances.
• September 29: Voting begins amongst LDO token holders.
• October 6: Voting concludes, and the decision is made.
• October 16: Official announcement of ceasing staking requests.
• November 17: Voluntary node operator off-boarding to commence.
• February 4: Final day for unstaking via Solana’s frontend.

The Financial Reality Check

Lido’s P2P team took over the Solana project back in March 2022, investing a whopping $700,000 into the venture while generating only $220,000 in revenue. It’s safe to say that the math just wasn’t in their favor—resulting in a net loss of $484,000. The team proposed a $20,000 monthly budget to maintain operational support during the sunsetting process. But alas, it wasn’t enough to sway the voting majority.

Community Vote: The Power of the Token Holders

When it came down to a vote, Lido’s token holders made their voices heard. Out of 70.1 million LDO tokens voted, a staggering 92.7% favored dismantling the Solana operations. They opted to cut their losses rather than risk further investment. Now that’s what we call a decisive DAO!

Unstaking: What Users Need to Know

For all the staked Solana (stSOL) holders out there: don’t panic! You will still receive network rewards during the sunsetting. However, those who wish to unstake will need to act swiftly. Here’s a breakdown:

• Before February 4: Use Solana’s frontend to unstake.
• After February 4: Unstaking will only be possible through command line interface (CLI).

Reflections on the Choice

Lido acknowledges that the decision to exit Solana wasn’t taken lightly. The Lido P2P team had built substantial relationships within the Solana ecosystem, but ultimately decided that this route was essential for the broader success of their protocol. As the saying goes, “Sometimes you have to cut your losses and run!”

Where is Lido Going From Here?

With Lido’s focus pivoting solely to Ethereum and Polygon for now, $14 billion and $80 million are the numbers you’ll want to remember. It looks like the financial future for Lido is a little more stable in those familiar waters. So, keep an eye on how this DeFi giant continues to navigate the waves of blockchain change!