As stated by Lido, “Whilst this decision was difficult in the face of numerous strong relationships across the Solana ecosystem, it was deemed a necessity for the continued success of the broader Lido protocol ecosystem.”
Crypto staking platform Lido announced its plans to remove support for the Solana (SOL) ecosystem over the coming months.
Earlier in September, Lido’s P2P (peer-to-peer) Validator suggested discontinuing staking services for SOL tokens on account of unsustainable finances and low transaction fees generated from Lido’s Solana protocol. The team also proposed an alternate solution to the funding issue by claiming that a 1.5M DAI token donation would help cover the annual staking expenses for Solana.
The voting on the proposal concluded on October 5, with a majority of Lido users opting in favor of sunsetting SOL staking. In the official blog post, Lido confirmed the platform will wind down staking services for Solana by 2024.
Lido has already removed the option to add new SOL stakes and plans to begin the validator off-boarding procedure by November 17. On February 4, 2024, Lido will officially scrap the Solana frontend from its website.
That said, Lido users who have staked SOL assets before the announcement will continue to receive staking rewards throughout the Solana sunsetting process. However, clients who attempt to unstake their Solana assets after February 4, 2023, will no longer be able to use the GUI frontend, and will instead have to use the Command Line Interface (CLI) to withdraw their staked tokens.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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