LDO Token Plummets Following Vote to End Liquid Staking on Solana

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Lido DAO has recently announced their decision to retire the Lido Solana project. This was the result of a community vote, where 92% voted in favor of the project’s dissolution due to financial issues. The native token of Lido DAO, LDO, has dropped by almost 4% in the past few hours.

The move was deemed necessary for the wider success of the Lido Protocol ecosystem. The P2P Validator Team, responsible for the project, had presented two scenarios to the community: to inject $1.5 million to sustain the project, or to exit the Solana blockchain. The team spent $700,000, however, they only made $220,000 in revenue, resulting in a $484,000 loss.

The staking of SOL tokens will be stopped by February 2024. Before this date, token holders must unstake their tokens via the Command Line Interface (CLI) on or before November 17-2023.

The decision to close down the project was made after extensive discussions and a vote by the community. The alternative option, which received just over 7% of support, involved additional funding for the project. The liquid staking solution is no longer available, following the end of Lido on Kusama and Polkadot.

The sunsetting process of Lido Solana was made to ensure the success of the Lido Protocol ecosystem.

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