Lido Neighborhood Mulls Shutting Down on Polygon
Decentralized staking protocol Lido could even sundown its operations on Polygon appropriate seven months after it launched on the community.
The neighborhood is for the time being debating on a proposal presented on Oct. 17 to withdraw from the chain. The proposal’s creator made the case for sunsetting Lido on Polygon by citing lacklustre earnings, impress possibility, pricey compensation structure and uncertainty surrounding Polygon’s roadmap.
“I’m now not an active DAO member, however merely a come by holder, and this ROI is a sheer raze of LDO/stETH incentives,” wrote the proposal’s creator “kentie” on the Lido governance dialogue board.
Kentie also pointed to the technical give a grab to that Lido underwent on Polygon, which reputedly presented a trojan horse that precipitated withdrawals to be halted for 25 days.
“While we were fortunate to haven’t any FUD around this era, this looks to pose a reputational possibility to a protocol with $15B in sources,” said kentie.
To this level, the response to the proposal has leaned in the direction of retaining Lido’s operations on Polygon intact.
“If LDO holders would vote to sundown Lido on Polygon protocol it’d be a truly spoiled signal to anyone who wants to collaborate with the DAO as belief will be highly impacted. It gets rid of the weight from voted-in proposals and drives to grant-pushed collaborations and diverse vogue of environments,” said Marin, a member of the protocol family contributors group at Lido.
The proposal comes appropriate days after the Lido neighborhood voted to sundown Lido on the Solana protocol. As of Oct. 16, Lido stopped accepting staking requests and all node operators off-boarding is scheduled to delivery on Nov. 17, whereas customers will be pleased till Feb. 4, 2024 to unstake their sources from the Solana frontend.
After wide DAO dialogue adopted by neighborhood vote, the sunsetting of Lido on Solana used to be authorised by LDO holders and can honest launch quickly.
More knowledge here: https://t.co/MyImL1qpap
— Lido (@LidoFinance) October 16, 2023
Source credit : unchainedcrypto.com