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Lido Halts SOL Staking on Solana, Initiates Exit Process

Lido, the decentralized liquid staking protocol, has announced its decision to cease operations on the Solana blockchain over the next few months. This decision, which follows extensive DAO forum discussions and a community vote, will have far-reaching implications for both node operators and stSOL token holders.

Sunsetting Justification

The decision to sunset Lido on Solana was not taken lightly. It came after a proposal was presented to the Lido DAO by P2P Validator, the development team behind Lido on Solana. The proposal outlined the achievements, challenges, and future prospects of Lido on Solana. P2P Validator had been actively contributing to the Lido DAO and developing the Solana-based Lido since March 2022.

Two scenarios were presented to the Lido DAO:

  1. Continue development on Lido on Solana with financial backing from the Lido DAO.
  2. Sunset Lido on Solana.

After extensive discussions and a vote by Lido DAO members, the decision was made to wind down Lido on Solana. While this decision was undoubtedly challenging, it was seen as necessary for the broader success of the Lido protocol ecosystem.

Implications for Users

For users, the sunsetting of Lido on Solana will bring several changes:

  1. Continued Staking Rewards: stSOL token holders will continue to receive network rewards throughout the sunsetting process. This ensures that users will not face any abrupt disruptions in their staking rewards.
  2. Unstaking Process: stSOL token holders can unstake their assets via the Lido on Solana frontend until February 4, 2024. After this date, unstaking can only be done through the Command Line Interface (CLI). Detailed unstaking instructions have been provided for various wallets, including Phantom, SolFlare, Ledger, and SoLong.

Implications for Node Operators

Node operators on Lido will also experience changes in their operations:

  1. Voluntary Off-boarding: P2P Validator and Lido NOM contributors will offer guidance on the voluntary off-boarding process via Lido community channels. Node operators who decide to exit the pool will be able to shut down their nodes following the off-boarding process. Those who choose to remain will continue to maintain their remaining stake on their nodes.

Key Dates

The sunsetting process will occur in several phases:

  • October 16, 2023: Lido on Solana staking will be discontinued, and no new stakes will be accepted.
  • November 17, 2023: Voluntary node operator off-boarding will commence.
  • February 4, 2024: Lido on Solana frontend support will conclude. After this point, unstaking will only be feasible via the Command Line Interface (CLI).

In conclusion, the decision to discontinue Lido on Solana is a significant development in the DeFi space. While it marks the end of a notable chapter, it’s essential to recognize the gratitude of Lido contributors for the Solana stakers, builders, and ecosystem partners who have been part of this journey. The decision to sunset Lido on Solana is not a reflection of the potential and longevity of the Solana ecosystem as a whole. The optimism of Lido contributors for the future of Solana remains undiminished.

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