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The team faced losses and unsustainable finances, leading Lido to announce its withdrawal from Solana.

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Users can continue to use it until February 4th, 2024, and node operators can voluntarily withdraw from November 17th, 2023.

Table of Contents:

· Team Loss, Project Withdrawal

· Community: Lido is best focused on Ethereum

BlockBeats news, October 16th, LSD track leader Lido announced that it will stop accepting new collateral on Solana, and its projects on Solana will gradually terminate in the coming months. According to a statement released by Lido's official blog, this decision was made after in-depth discussions on the Lido DAO forum and was approved by Lido token holders after a community vote. According to snapshot data, 92.73% of the members who voted supported the withdrawal from Solana.

In addition, the statement indicates that stSOL token holders will continue to receive network rewards during the termination process until February 4, 2024. They can also cancel their mortgage through Lido's front-end on Solana. Node operators can voluntarily withdraw from November 17, 2023. Lido remains optimistic about Solana's future and thanks all Solana participants, builders, and ecosystem partners.

Team loss, project withdrawal

In fact, the signs of Lido's exit from Solana were already evident in September. On September 5th, the Lido on Solana project team submitted a proposal to the Lido DAO community seeking financial support to continue its development efforts on Solana. In the proposal, they stated that "since taking over the project from Chorus One in March 2022, the team has made significant progress in product and business development. However, due to the team's investment of approximately $700,000 in the Lido on Solana project in 2022-2023, while only generating $220,000 in revenue, resulted in a loss of $484,000."

In order to continue the development of the project, the team has proposed two basic plans: one is for Lido DAO to provide financial support, including development, marketing, and customer support budgets, totaling $1.5 million; the other is to begin the process of sunsetting Lido on Solana (i.e. exiting Solana), similar to Lido on Polkadot and Kusama.

Most people have chosen the second option this time, partly due to the losses of Lido on Solana, and partly due to deeper reasons.

Community: Lido is best focused on Ethereum

Some users analyze the possibility of further integration between Solana and Lido from the perspective of project genes and tone: "My personal opinion is that the foundation has made the right decision, and Lido DAO is best focused on Ethereum, regardless of its motivation. Although I have no doubt that Solana will succeed in the long run, any winning LST on a specific chain needs to be integrated into the culture of that chain."

Another community user commented: "I think the economic benefits that DAO may obtain are negligible compared to the risks of brand/reputation damage, making it an interesting thing to think about but definitely not worth serious consideration. The remaining issue is that the expansion model has fundamental flaws (in terms of unclear responsibilities, execution responsibilities, liquidity incentives, etc.)."