Layer 1 Protocol, Solana Ecosystem
Solana is a permissionless, decentralized, and secure smart contract blockchain platform proposing to solve the scalability problem.
Solana encodes the passage of time as data, called Proof of History (PoH), and leverages a verifiable delay function (VDF) to reduce transactional overhead between nodes in the network.
Solana is designed for decentralized applications that demand high throughput. Its architecture enables transactions to be ordered as they enter the network, rather than by block. Its uses cases include, decentralized exchanges, payments, micropayments, and distributed storage.
Every epoch (2-3 days)
Reward Distribution Period (Payout frequency)
Every epoch (2-3 days)
Figment Validator Address
50% of each transaction fee is burned, with the remaining fee retained by the validator that processes the transaction
Solana has a nakamoto coefficient of 27, proving to be on the most diverse chains in terms of token validation and thus minimizing validator collusion.
You will be prompted to create a password to encrypt your Keystore file, and then download the encrypted file to your computer, or more securely, to a hardware wallet. Recommended: a new file back to the site to verify the download was saved correctly.
Don’t lose this file or the password used to encrypt it. Any funds in your wallet will be lost permanently.
When accessing your wallet back onto the site:
That’s it to store and trade SOL.
At the bottom of the page, you can setup your staking account and start delegating:
Enter the amount of SOL you want to use to fund your new stake account. This amount will be withdrawn from your wallet and transferred to the stake account. Don’t transfer your entire wallet balance because your wallet is still used to pay any transaction fees associated with your stake account.
After you submit and sign the transaction, you will see your new stake account appear in the box labeled “Your Staking Accounts.”
Figment’s Node Operation ID:
From the Staking dashboard, click “Delegate” on the right side of a stake account. Select the validator you wish to delegate to from the drop-down list - click Delegate. That’s it!
Inflation and network rewards are not yet enabled on Solana’s mainnet, but the team suggests they will be in the near future. You can read more about Solana’s unique PoH on their website or whitepaper.
There is no decentralized governance on the network. The core team controls network developments and communicates those instructions for node operators to upgrade their infrastructure.
Solana has a flourishing ecosystem in terms of DeFi and NFTs due to the Solana network’s low fees and rapid transaction fees with sub-second finality.
Solana’s main DeFi Projects are:
Raydium: A DEX and AMM which engages in liquidity provision for other projects like Serum.
Serum: Is a Solana native orderbook based DEX which is known for its speed and for bringing some of the advantages that CEX have to a DEX platform.
Orca: Orca is DEX and AMM on Solana that does not use the same orderbook style as projects like Serum. Orca allows swapping, yield farming and aqua farms which allow liquidity providers to both swap fees and eaten fees in Orca tokens.
NFTs on Solana:
Solana has many great NFT marketplaces such as Solanart, Solsea and Magic Eden, all of which are highly popular.
Solana Pay: Solana also has Apps with real world utility in e-commerce such as the Solana Pay. Solana pay is an app which allows payments in USDC and other SCP-20 tokens on the blockchain, in a decentralized, disintermediated P2P fashion.
What is staking?
On a Proof of Stake blockchain, staking is the act of depositing tokens in order to become a validator; that is, to participate in proposing and attesting to transaction blocks. Anyone with a minimum necessary coin balance can validate transactions and earn staking rewards on these blockchains.
What is the name of the asset being staked?
Solana’s native token, SOL, will be used for staking and transaction fees. Solana also has a wrapped token, SPL. It is the standard for synthetic token creation and exchange.
Where can I explore the network and create a Solana wallet?
How long does it take to stake and unstake?
When you start staking, it will take about 48 hours to begin earning staking income. When you stop staking, it will take about 48 hours for your tokens to be liquid (i.e., before you can transfer or trade them).
When are staking rewards and transfers enabled?
Transfers are currently enabled. Staking rewards were fully enabled on Feb 10, 2021.
Can I lose potential staking rewards?
Your potential rewards depend upon validator performance. When your validator is down, you will not be earning staking income.
Is staking income liquid or automatically restaked?
Staking income is restaked automatically, which means you will need to unstake to withdraw your staking income.
Can my staked SOL be slashed (seized or destroyed)?
Downtime slashing is not enabled on Solana at this time. Delegators will be slashed up to 100% via on-chain governance if their validator signs illegal transactions or votes for an illegal fork.
What is the rate of new issuance (aka "annual inflation") for SOL? How does the token supply change?
Currently, the inflation rate is around 8% of the total supply, set to decrease by 15% per year until reaching a floor of 1.5%.
What affects future yields?
Solana’s future yields are primarily affected by 2 primary factors, the duration of epochs throughout the year and Solana’s tokenomics.
Solana’s epoch duration has some level of variance and can be longer than the 2 days in which the overall APY is predicated on- this means the APY can be less than anticipated. Likewise if epochs occur at faster duration than the anticipated 2 days then the APY will be higher.
With Solana’s tokenomics the initial inflation rate starts at 8%, it then decreases year by year and has a 15% disinflation rate until a 1.5% inflation rate is reached on the 10th year, thus Solana’s inflationary rewards decrease year by year making Solana more scarce.
Do I maintain custody of my SOL tokens?
Who or what controls my staked SOL token? Figment has partnerships with a number of top-in-class custodians. Please contact [email protected] for more inquiries. When you stake your SOL, the Solana protocol controls your tokens (not your validator) until you unstake. Unstaking takes about 48 hours from the time you initiate the process.
How are decisions about Solana made and executed?
Solana uses token voting for on-chain governance. Governance proposals are discussed on the Solana forum.
Long-term governance will be conducted under the Solana Foundation, a Swiss non-profit entity established in June 2019. Various stakeholder groups within the Solana community (such as validators, replicators, users, developers, and token holders) will elect the foundation’s board.