Lido Exits Solana Following Community Vote
The post Lido Exits Solana Following Community Vote appeared on BitcoinEthereumNews.com. Lido on Solana wasn’t projected to being in enough revenue to offset development costs. Lido, the largest Ethereum staking network, decided to exit the Solana blockchain as revenue that was expected to come in from the operation didn’t offset its development and marketing costs. Lido reached the decision to leave the second-largest chain by value staked after a poll on the decision closed with 92.7% of participants voting to sunset operations on the chain. P2P Validator, the Lido on Solana development team, had so far invested ~$700,000 primarily in development and support. Their revenue during this period was around $220,000, including developer fees and milestone rewards, resulting in a net loss for Lido of ~$484,000, according to a post on the Lido forum. P2P Validator put forth a proposal to the Lido community suggesting an estimated cost of $1.5M for the next 12 months. This figure was intended to cover various expenses, including a quarterly development retainer of $200,000, an annual adoption incentive program of $600,000 and $100,000 for customer support. P2P’s Expansion Vision P2P projected that with the proposed funding, Lido on Solana could grow and secure more than 1% of the Solana staking market share. The team estimated that a 1% share of the staking market in Solana would result in treasury income of approximately 10,191 SOL over 12 months. At current prices, this amount translates to approximately $200,000. Total staked tokens on Solana are worth about $9.35B, compared with $43.7B on Ethereum, according to stakingrewards.com. Community Decision Despite the potential upside presented by P2P Validator, the Lido community argued the proposal doesn’t make economic sense. “Why would DAO treasury have exposure to 1.5m USD invest for potential return of 10k SOL,” wrote a user under the name Marin in the forum. “Voters need to be aware that…
The post Lido Exits Solana Following Community Vote appeared on BitcoinEthereumNews.com.
Lido on Solana wasn’t projected to being in enough revenue to offset development costs. Lido, the largest Ethereum staking network, decided to exit the Solana blockchain as revenue that was expected to come in from the operation didn’t offset its development and marketing costs. Lido reached the decision to leave the second-largest chain by value staked after a poll on the decision closed with 92.7% of participants voting to sunset operations on the chain. P2P Validator, the Lido on Solana development team, had so far invested ~$700,000 primarily in development and support. Their revenue during this period was around $220,000, including developer fees and milestone rewards, resulting in a net loss for Lido of ~$484,000, according to a post on the Lido forum. P2P Validator put forth a proposal to the Lido community suggesting an estimated cost of $1.5M for the next 12 months. This figure was intended to cover various expenses, including a quarterly development retainer of $200,000, an annual adoption incentive program of $600,000 and $100,000 for customer support. P2P’s Expansion Vision P2P projected that with the proposed funding, Lido on Solana could grow and secure more than 1% of the Solana staking market share. The team estimated that a 1% share of the staking market in Solana would result in treasury income of approximately 10,191 SOL over 12 months. At current prices, this amount translates to approximately $200,000. Total staked tokens on Solana are worth about $9.35B, compared with $43.7B on Ethereum, according to stakingrewards.com. Community Decision Despite the potential upside presented by P2P Validator, the Lido community argued the proposal doesn’t make economic sense. “Why would DAO treasury have exposure to 1.5m USD invest for potential return of 10k SOL,” wrote a user under the name Marin in the forum. “Voters need to be aware that…
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