Liquid staking protocol Lido Finance will cease operations on the Solana blockchain based on the results of the DAO vote in which 93% of Lido Finance participants have supported the decision.
First proposed by Lido P2P team in early September, the plan to cease supporting Solana was driven by unstable financial performance and low commission volumes.
According to Yuri Mediakov, one of the developers, the project invested about $700,000 to deploy on Solana but only generated $220,000 in revenue. In order to reach their intended development goals, they would need additional support from the DAO.
The alternative was to continue operations, for which the developers requested funding of $1.5 million for 12 months.
This included $200,000 per quarter for development costs, $600,000 for incentive programs and support, and $100,000 for customer support.
However, even with this funding, the team projected a 1% stake on Solana generating only $200,000 in revenue. Ultimately, with a 93% support from participants, Lido Finance has decided to stop operations on the Solana blockchain.
