Lido DAO Receives Request for $1.5 Million Funding to Expand Solana Liquid Staking

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Fredrik Vold

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Fredrik Vold

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September 6, 2023 14:06 EDT

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A group known as the P2P team has requested $1.5 million in funding from the popular staking provider Lido DAO to further develop Lido’s staking service for the Solana (SOL) network.

The request from the P2P team was published as a proposal on Lido DAO’s governance forum, with the team saying it needs $800,000 annually to cover development expenses, and as much as $600,000 annually for marketing.

In total, $1.5 million is needed for the next 12 months, the team wrote.

‘Sunset process’

If the request for funding is not approved, the team said that a “sunset process” for Lido on Solana should be initiated.

The team proposed the process could start as early as September 10 with no new staking deposits being accepted by Lido on Solana.

It added that on October 10, voluntary node operators could be off-boarded from the liquidity pool, and on February 2 next year all frontend support would be halted.

Solana has shown ‘remarkable promise’

“We firmly believe in the potential of the Solana ecosystem and are confident that Lido on Solana can play a pivotal role in its growth,” the team wrote in the proposal, while praising Solana for its “remarkable promise in scalability, speed, and innovation.”

“With the proposed financial backing, we can not only sustain our operations but also innovate, grow, and contribute more value to the Lido DAO and the broader Solana ecosystem,” the team added.

The P2P team is the entity in charge of managing Lido’s services on Solana, a service that has seen strong growth in recent months.

The team operates a validator on the Solana network and has developed infrastructure that is used by several Solana-based projects.