Lido Finance, a prominent decentralized finance (DeFi) protocol specializing in staking services, made an important announcement. They declared their support for the Solana blockchain, providing an avenue for SOL holders to stake their tokens while receiving a liquid staking token in return. Today, however, Lido Finance faces a crucial challenge that could potentially disrupt their support for the Solana ecosystem. In response, the Lido team has presented a proposal to the Lido DAO, seeking $1.5 million in additional funds to overcome this obstacle and ensure the continued development of their Solana project.

Seeking Funding for Continued Solana Support:
The funding proposal, presented to the Lido DAO on Monday, emphasizes the necessity for additional financial resources to sustain the Lido on Solana P2P team’s development efforts. Acknowledging a previous investment of $700,000, it becomes evident that this funding has been largely exhausted. To secure the future of the project for the next 12 months, the team aims to obtain $1.5 million, encompassing various expenses such as development costs, marketing initiatives, and robust customer support.

Objectives and Growth Strategy:
The Lido team aspires to capture 1% of the Solana staking market share within the coming year. To achieve this ambitious goal, their proposal outlines plans to introduce innovative features, execute a consistent marketing strategy, and provide a dependable customer support service. They firmly believe in the immense potential of the Solana DeFi market and emphasize the pivotal role of Lido’s protocols in driving its growth.

Alternative Proposal and Potential Sunset:
In the unfortunate event that the Lido DAO is unable to provide the desired $1.5 million in funding, the team has put forward an alternative course of action. This proposal suggests that the Solana on Lido project would be regrettably discontinued, similar to the past sunsetting of the Lido on Polkadot and Lido on Kusama projects. For a smooth transition, a modest budget of $100,000, equivalent to $20,000 per month over five months, would be required to facilitate the sunset process.

Sunset Procedure:
Outlined in the proposal, the sunset process would commence on September 10, 2023, with Lido on Solana ceasing to accept new staking deposits. Subsequently, on October 10, 2023, voluntary node operators would gradually phase out their involvement in the staking pool. Finally, as of February 10, 2024, frontend support would be halted, mandating that unstaking can only be carried out through the command-line interface (CLI).

Future Decisions and Community Input:
The Lido DAO is expected to commence voting on the proposal within the next four weeks. The Lido on Solana team acknowledges the critical juncture they face and highlights the significance of the choices that will influence the future of the project. With an optimistic outlook, they eagerly anticipate constructive feedback from the DAO, emphasizing their joint potential in achieving remarkable milestones.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.