Lido on Solana Bids Farewell, Transition and Gratitude Amidst Sunsetting

In a significant turn of events, Lido on Solana, a pivotal player in the Solana ecosystem, is set to begin its sunsetting journey. The decision, rooted in extensive discussions and community votes within the Lido DAO, was initiated after a detailed proposal by the P2P Validator, the dedicated development team behind Lido on Solana. The DAO was presented with two options: to continue with financial backing or to gracefully sunset the project. Following thoughtful deliberation, the latter was chosen as the best course of action, albeit a challenging one.

This transition does not mean any less of the achievements and relationships fostered within the Solana community. The sunsetting process, set to commence on October 16, 2023, marks the end of an era. Yet, Lido on Solana contributors express heartfelt gratitude to the stakers, builders, and ecosystem partners who made this journey momentous.

For users invested in stSOL, there’s a silver lining amidst this change. Throughout the sunsetting process, stSOL holders will continue to receive their staking rewards. However, there are important dates to remember: until February 4, 2024, users can unstake via the Lido on Solana front. After this date, unstaking can only be done using the Command Line Interface (CLI).

Node operators, crucial pillars of the Lido on Solana ecosystem, face a voluntary off-boarding process starting from November 17, 2023. P2P Validator and Lido NOM contributors will guide operators through this process, ensuring a smooth transition. Operators opting to exit the pool will be able to shut down their nodes following the off-boarding, while those remaining will maintain their stakes.

This decision, though poignant, does not reflect a lack of belief in the potential and longevity of the Solana ecosystem. Instead, it represents a strategic move to ensure the continued success of the broader Lido protocol ecosystem. 

In the last two months, Lido’s financial position has undergone a noticeable change. The platform’s Total Value Locked (TVL), which is a crucial indicator of the total assets staked or deposited in a DeFi protocol, has experienced a slight decline. This contraction of 1.1% was primarily influenced by a decrease in SOL staking deposits and a general fall in token prices.