Solana’s Lido project stands at a crossroads. Community backing could redefine its future, but its absence may spell its end.
The Current State of Lido on Solana: Seeking Financial Lifeline
The Lido on Solana initiative, managed by the reputable P2P company, currently faces financial obstacles. The team is striving to realize its foundational goals. Unfortunately, without an infusion of $1.5 million, their staking solution on the Solana network might halt.
Yuri Mediakov, representing P2P, has put forth two distinct pathways for the project’s trajectory:
Continued Growth with Community Support:
- The Lido DAO community is presented with an opportunity: invest $1.5 million over 12 months into Lido on Finance. This budget comprises:
- $200,000 each quarter for developmental purposes.
- An annual $600,000 earmarked for marketing initiatives.
- $100,000 per annum dedicated to customer service.
- Mediakov confidently forecasts that this financial support would empower P2P to capture more than 1% of Solana’s staking market within a year. This achievement translates to a yearly revenue of 10,191 SOL, valued at $200,000.
- He underscores the pivotal role Lido could occupy in the expanding Solana ecosystem, emphasizing: “The Solana network, with its scalability, speed, and innovative spirit, offers a rich environment for DeFi projects. Our vision aligns with this potential, and with adequate funding, it can become an integral part of this growth.”
Winding Down the Project:
- Should the community decline to provide the needed funds, Lido on Solana might follow its predecessors, Lido on Kusama and Polkadot, into gradual closure.
- Mediakov elucidates this “sunsetting process” would span from September 2023 to February 2024. To ensure smooth technical maintenance throughout this phase, he suggests a monthly assistance of $20,000 from the Lido DAO, starting September 4, 2023.
Lido’s Past and Future: A Brief Overview
Follow CryptoMode on Twitter, Youtube and TikTok for news updates! While Lido faces challenges with liquid staking across certain networks, it notably stands as a powerhouse in the Ethereum staking market, boasting a 32.4% share per Dune Analytics.
Historically, P2P took the Lido on Solana project reins from Chorus One in March 2022. This change in leadership led to a commendable 330% surge in its Total Value Locked (TVL) from December 2021’s 954,000 SOL to 4.1 million SOL by October 2022. But it’s not all rosy: the substantial investment of $700,000 has, thus far, yielded a mere $220,000 in revenue.
Furthermore, since P2P’s acquisition, SOL, the native token of Solana, has seen a sharp 92% plunge from its peak value of approximately $260 in November 2021.
Mediakov earnestly concludes:
“We stand at a pivotal moment. The choices made now will determine Lido on Solana’s destiny. While optimistic about our collective potential, we eagerly await your valuable input. We aspire to promptly bring this to a Snapshot vote, reinforcing our mutual dedication to Lido on Solana’s prosperous journey.”
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