SOL token is
The native token of the Solana blockchain.
SOL token is used for
- Staking for network security
- Transaction fees
How could value accrue to the SOL token?
- Transactions fees
What is Solana?
Solana is a high-speed proof of stake blockchain.
How Solana works
Solana aims to be able to handle 700 000 transactions per second, without losing security or decentralization.
Solana does this by:
- A method to share time between nodes even though they don’t trust each other.
- A Solana cluster is a set of validators processing transactions
- Using a bitcoin feature called nLocktime
- Bitcoin clients uses block height instead of a timestamp when they don’t trust the network.
- It’s a cryptographically secure way to say time has passed.
Solana uses a granular verifiable delay function for consensus.
Stakers are rewarded for helping to validate the ledger. They delegate stakes to validator nodes. Validators replay the ledger and send votes to a per-node vote account to which stakers can delegate their stakes.
- Stakers put up the stake
- Validators run the hardware
Current supply: 495,780,912
Genesis inflation: 7%
Final inflation: 1.5%