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Lido Could End Support For Solana If Lido DAO Votes Against This Proposal

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Lido Could End Support For Solana If Lido DAO Votes Against This Proposal

Back in 2022, Lido Finance, a decentralized finance (DeFi) protocol providing staking services, announced support for Solana. Since then, the DeFi platform has provided an avenue for Solana users to stake their SOL and receive a liquid staking token while doing so.

The platform has run into a problem that could lead to the end of its support for the Solana blockchain. However, the Lido team is already looking to mitigate this by bringing a proposal for additional funds to the Lido DAO.

Team Wants $1.5 Million To Support Lido On Solana

In a new funding proposal presented to the Lido DAO on Monday, the Lido on Solana P2P team is appealing for more funds from the DAO to enable them to continue their development efforts. The proposal highlights a previous $700,000 investment in the project, but it seems that funding has already run out. So the team is looking for $1.5 million in funding to keep the project going for the next 12 months.

The breakdown for how the $1.5 million, if approved, is spread across things like development costs, marketing, and customer support. All of these are expected to run over a one-year period as the P2P team works toward trying to make Lido a DeFi powerhouse when it comes to Solana staking.

According to the team, they are looking at cornering 1% of the Solana staking market share in the next 12 months. Also included in the proposal is the intention to create new features and implement a more consistent marketing strategy. Then topped up with a “dependable customer support service.”

“We believe in the future success of the Solana DeFi market and anticipate that LS protocols will play a significant role in driving this growth,” the proposal reads.Solana SOL price chart from Tradingview.com (Lido DAO)

SOL price trailing $20 | Source: SOLUSD on Tradingview.com

Sunsetting The Project If Funding Is Unavailable

On the flip side of this, if the team is unable to secure the $1.5 million in funding from the Lido DAO, they have proposed an alternative. This alternative would see the Solana on Lido project come to an end and sunsetted like the Lido on Polkadot and Lido on Kusama projects.

To do this, the teams would only require $20,000 a month for a total of five months, meaning $100,000, to carry out the sunsetting process. An outline for how this sunset would work is also presented as shown below;

2023-09-10 — New staking deposits are no longer accepted by Lido on Solana

2023-10-10 — Voluntary node operator off-boarding from the pool

2024-02-10 — Frontend support is halted, unstaking is available only through CLI

Voting for the proposal is set to begin in the next four weeks. In its closing remarks, the team addressed the DAO saying, “We are at a critical juncture where the decisions we make today will shape the future of Lido on Solana. We are optimistic about what we can achieve together and look forward to your constructive feedback.”

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from Exodus Wallet, chart from TradingView.com

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