As early as 2022, Lido Finance, a decentralized finance (DeFi) protocol that provides staking services, announced its support for Solana. Since then, the DeFi platform has provided a way for Solana users to stake SOL and earn liquid collateral tokens in the process.
The platform has encountered an issue that may result in the end of support for the Solana blockchain. However, the Lido team is already looking to alleviate this issue by proposing additional funding to the Lido DAO.
Team Seeks $1.5M to Support Lido on Solana
In a new funding proposal submitted to the Lido DAO on Monday, the Lido on Solana P2P team called on the DAO to provide more funding to allow them to continue development work. The proposal highlighted a previous $700,000 investment in the project, but funding appears to have run out. As such, the team is seeking $1.5 million in funding to keep the project going over the next 12 months.
If approved, how the $1.5 million will be allocated among development costs, marketing and customer support. All of this is expected to take place over the course of a year, with the P2P team working to make Lido the DeFi giant when it comes to Solana staking.
According to the team, their goal is to capture 1% of the Solana staking market share within the next 12 months. The proposal also includes intentions to create new features and implement a more consistent marketing strategy. Then there’s the “reliable customer support service.”
“We believe in the future success of the Solana DeFi market and expect the LS Protocol to play an important role in driving this growth,” the proposal reads.
SOL price trailing $20 | Source: SOLUSD on Tradingview.com
Terminate project if funding is not available
On the other hand, if the team is unable to secure $1.5 million in funding from the Lido DAO, they will come up with an alternative. This alternative will bring the Solana on Lido project to an end and sunset like the Polkadot-on-Lido and Kusama-on-Lido projects.
To do this, the team needs only $20,000 per month for a total of 5 months, or $100,000, to execute the sunset process. An outline of how this sunset works is also presented below;
2023-09-10 — Lido on Solana no longer accepts new pledge deposits
2023-10-10 — Node operators voluntarily withdraw from mining pools
2024-02-10 — Frontend support stopped, only unstaking via CLI
Voting on the proposal is scheduled to begin within the next four weeks. In their closing statement to the DAO, the team stated: “We are at a critical moment and the decisions we make today will shape the future of Solana Lido. We are optimistic about what we can achieve together and look forward to your constructive Feedback.”