The staff reductions affected contributors within the Lido DAO ecosystem, including Lido Labs and affiliated services, sparking discussions in the crypto community.
Reasons for Lido's Layoffs
Lido co-founder Vasiliy Shapovalov highlighted that the layoffs were made to optimize costs rather than due to performance issues. "This decision was about costs — not performance," he remarked. The layoffs impacted various segments of the ecosystem, adding complexity amid the evolving cryptocurrency market.
New Developments with Lido v3
The layoffs occurred just months after the launch of Lido v3, a modular upgrade aimed at improving the protocol's flexibility and decentralization. This new architecture introduced "stVaults" — customizable staking modules that allow users to choose their participation across different networks and validators.
Assessing Lido's Situation
Despite healthy metrics, such as over $31 billion in total value locked, Lido's leadership emphasizes the need for a refinement of the current structure. This pressure comes from competitors and demands from token holders for improved governance. Critics argue that the protocol’s growth has come with governance challenges and that the layoffs are a necessary step for better management.
The staff cuts at Lido highlight the challenges faced by the protocol as it seeks to maintain its market position and improve financial discipline in a volatile crypto landscape.
