Lido Finance platform has decided to discontinue its Solana staking service following a majority vote by LDO token holders. The service will be permanently discontinued in February 2024. The decision comes after a community vote that ended with a 92% approval of the measure.
The company will no longer accept new requests for staking Solana (SOL) tokens. The measure is immediate, meaning that new users from the given date won’t have access to this service.
The vote results were conclusive, with 92% of the Lido community in favor of permanently ending the service. Among the main concerns expressed by some community members were the high costs associated with maintaining the service by the P2P developers.
An Announced Ending
This decision marks the culmination of a process that has been unfolding for some time. Lido’s Solana staking platform had reached an all-time high in April 2022, with $440 million worth of SOL tokens locked. However, after the vote, this amount dwindled to around $55 million
It is worth noting that the vote is an excellent example of decision-making within a DAO. In this case, the Lido community took a stance on a crucial decision to determine the platform’s course and provided a valuable demonstration of what organized crypto communities can achieve.
The product developers reported losses of over $480,000 in the past year, despite investing $700,000 in its development. They expressed concern about their inability to achieve their goals in the coming year, especially given the current market situation of Solana, and emphasized that “achieving even 2% of the market in 2023-2024 seems improbable.”
This is due to the lack of marketing assistance and a resolution from the Lido DAO committee to discontinue all incentives in Solana. They ultimately sought funding from Lido to continue offering the SOL staking product to users. Without this funding, they would be forced to terminate the product.
