Decentralized staking platform Lido Finance has decided to no longer accept new staking requests for Solana (SOL) tokens.
Lido Finance Suspends Solana Staking Service Following DAO Vote
This move comes after Lido's LDO token holders voted in favor of discontinuing the service.
New users will no longer be able to stake SOL on Lido and the platform will stop supporting staking of existing tokens as of February 2024.
Data shows that approximately $55 million worth of SOL tokens are currently locked on Lido, a significant decline from a peak of $440 million in April 2022.
“After much discussion and voting by members of the Lido DAO, it has been decided that the best course of action would be to close the Lido in Solana,” Lido developers said in an official statement.
More than 92% of the Lido community voted in favor of stopping the service in the vote held on October 5. Ahead of the vote, some community members expressed concerns about the high maintenance costs cited by P2P developers.
Decentralized Autonomous Organizations (DAOs) operate based on blockchain technology and are usually governed by a native crypto token.
Staking involves locking up tokens on a protocol to verify transactions and support the operation of a blockchain network, usually in exchange for rewards.
*This is not investment advice.