Hassan Maishera
On Monday, the Lido Finance team announced via a blog post that over the coming months, Lido on Polygon will be effectively discontinued. This comes after extensive DAO forum discussion followed by a community vote.
The sunsetting of the Lido on Polygon protocol was requested by LDO token holders, and this process will begin shortly. According to Lido, several factors contributed to this situation: limited user adoption, insufficient rewards, resource-intensive maintenance requirements, and evolving ecosystem dynamics.
With this latest development, stMATIC holders will stop receiving network rewards throughout the sunsetting process. The protocol will temporarily pause and then resume operations from January 15-22, 2025. No withdrawals can be processed until after the protocol resumes.
Furthermore, users can unstake their MATIC through the Lido on the Polygon frontend until June 16, 2025. After June 16, 2025, withdrawals will remain possible through Explorer tools.
Lido is a secure liquid staking solution for proof-of-stake (PoS) cryptocurrencies that supports Ethereum 2.0 (The Merge) staking and a growing ecosystem of other Layer 1 PoS blockchains. Its native LDO token is down 5% in the last 24 hours, trading at $2.285 per coin.
Polygon (previously Matic Network) is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. Its core component is Polygon SDK, a modular, flexible framework that supports building multiple types of applications. POL is down 3% in the last 24 hours and trades at $0.5916.
