DeFi Giant Lido Votes Against Supporting Terra 2.0

Lido Finance, the largest liquidity staking pool platform, said on Wednesday it will not launch the Lido staking pool on Terra 2.0. The proposal to support Terra’s reboot received 94.57% votes in against from the Lido DAO community. In fact, Lido Finance had Terra as the second-largest platform after Ethereum for liquidity staking, with about $10 billion in total value locked (TVL) before the crash.

Lido Finance Will Not Support Terra Relaunch

On May 22, Lido DAO introduced a proposal for voting on whether Lido should launch on the new Terra blockchain. However, the voting has now ended, with the community opposing the re-launch of the Lido staking pool on Terra 2.0 due to perceived risks.

The option “No relaunch” received 94.57% votes, with 54 million LDO tokens, while “Relaunch” received just 5.43% votes, with 3.1 million LDO tokens. After the Lido community voting, the governance process confirmed rejecting support for Terra.

Despite the $19,250 monthly revenue under the Terra new proposal, the community has majorly voted against supporting Terra 2.0. In case the Lido DAO rejects the proposal, bLUNA and stLUNA holders can still claim LUNA, the proposal specifically noted.

“The allocation of Terra’s new token to bLuna and stLuna holders is not contingent on the DAO’s decision. In other words, if the DAO decides not to support the reboot, bLuna and stLuna users at the time of the snapshots will still be able to claim their shares of the allocations.”

Moreover, Lido Finance will soon share information regarding Lido on Terra Classic in the near future for the benefit of bLuna and stLuna holders. Meanwhile, the Terra 2.0 proposal 1623 for the new blockchain has officially been passed. The proposal received 65.5% votes in favor, 20.98% abstaining, and 0.33% opposing it.

Terra Losses Trust of the Crypto Community

Terraform Labs’ founder Do Kwon received backing from validators and Terra Builders Alliance, but community support remains unclear at this point. In fact, South Korean exchanges including Upbit, Coinone, Cobit, Bithumb, and Gopax seem to reject the listing of the new LUNA token due to ongoing investigations.

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

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