Lido (LDO) on Solana (SOL), a prominent protocol within the Solana ecosystem, has recently decided to discontinue its operations over the coming months.
The announcement follows extensive discussions within the Lido decentralized autonomous organization (DAO) community and subsequent voting by token holders, resulting in the approval of the sunsetting process.
Lido On Solana Announces Sunset Plan
According to the announcement, the decision to sunset Lido on Solana was made after carefully considering the protocol’s achievements, challenges, and prospects.
The development team behind Lido on Solana, known as peer-to-peer (P2P) Validator, presented two scenarios to the Lido DAO: continuing development with financial support or initiating the sunset process.
Ultimately, the DAO members determined that winding down Lido on Solana was the most appropriate course of action for the overall success of the broader protocol ecosystem.
While acknowledging the strong relationships fostered with various stakeholders in the Solana ecosystem, the sunsetting decision was deemed necessary. The protocol further stated:
The journey with Lido on Solana protocol has been momentous, filled with challenges overcome and milestones celebrated. While this marks the end of this particular chapter, the optimism of Lido contributors for the future of Solana remains undiminished.
Holders To Receive Ongoing Network Rewards
Implications for users of the protocol on Solana include the following:
- Continued Staking Rewards: Holders of stSOL tokens will continue to receive network rewards throughout the sunsetting process.
- Unstaking Process: Until February 4, 2024, stSOL holders can unstake their tokens using the Lido on the Solana frontend. After this date, the unstaking process will transition to the Command Line Interface (CLI).
The sunsetting process will also affect node operators within the Solana network. Key dates and actions for node operators are as follows:
- October 16, 2023: Solana staking will be discontinued, and no new stake will be accepted.
- November 17, 2023: Voluntary node operator off-boarding will commence.
- February 4, 2024: Frontend support will conclude, and unstaking will only be possible via the CLI.
The protocol thanked Solana stakers, builders, and ecosystem partners for their support throughout the journey. While this chapter comes to a close, the optimism for the future of the Solana ecosystem among Lido contributors remains steadfast.
As of the current writing, LDO is trading at $1.58, representing a slight decrease of 0.3% over the past 24 hours. However, the token has demonstrated a positive performance over longer timeframes, with a 4.8% profit in the past 7 days and a 3.4% increase over the 30 days.
Featured image from Shutterstock, chart from TradingView.com