Question: What is SOL?

Answer: SOL is Solana’s native asset: it’s used to pay transaction fees and is integral to staking and network security.

Question: What is SOL used for within the network itself?

Answer: Primarily to pay transaction fees (base fee and, where needed, a prioritisation fee), and for staking/delegation to validators.

Question: Does SOL have a maximum supply?

Answer: There is no fixed hard cap: SOL is inflationary, with parameters defining an initial inflation rate and a gradual reduction towards a long-term rate.

Question: What is Solana’s inflation and how does it work?

Answer: By default, the parameters used are: Initial Inflation Rate 8%, Dis-inflation Rate −15% (annual reduction), Long-term Inflation Rate 1.5%.

Question: What are SPL tokens and how do they relate to Solana?

Answer: On Solana, tokens are typically implemented as SPL (Solana Program Library) tokens — the standard for representing and managing tokenised assets in the ecosystem.

Question: Why can Solana fees differ from the “usual”?

Answer: The transaction fee includes a base component and an (optional) prioritisation component added to increase the chance the current leader processes the transaction.

What is Solana (SOL)

Solana is a high-performance Layer-1 (L1) blockchain for dApps, DeFi, and payments, with low fees and fast transaction confirmation.

Launch 16.03.2020 Solana

Who created it

Anatoly Yakovenko, Raj Gokal, Greg Fitzgerald, Stephen Akridge

Why it was created

Solana was built as a base layer (Layer 1) for scalable applications and high-frequency on-chain activity: fast transactions, low fees, a developer-friendly smart-contract environment, and asset tokenisation.

How it’s used

Paying network transaction fees in SOL
Staking/delegating SOL to validators to support network security and earn rewards
Providing liquidity / using SOL as collateral in Solana DeFi protocols
Issuing and transferring tokens, including stablecoins and utility tokens
NFT trading and gaming assets (GameFi)
Fast, low-cost payments and transfers (including stablecoins)

Risks

Technical network risks (congestion, outages, performance degradation) leading to confirmation delays/errors
Centralisation risk from concentrated stake and the influence of large validators or infrastructure providers
Inflationary issuance model (dilution without staking); parameters may be debated/changed via proposals
Market volatility of SOL and ecosystem tokens

FAQ

Question: What is SOL?: Answer: SOL is Solana’s native asset: it’s used to pay transaction fees and is integral to staking and network security.
Question: What is SOL used for within the network itself?: Answer: Primarily to pay transaction fees (base fee and, where needed, a prioritisation fee), and for staking/delegation to validators.
Question: Does SOL have a maximum supply?: Answer: There is no fixed hard cap: SOL is inflationary, with parameters defining an initial inflation rate and a gradual reduction towards a long-term rate.
Question: What is Solana’s inflation and how does it work?: Answer: By default, the parameters used are: Initial Inflation Rate 8%, Dis-inflation Rate −15% (annual reduction), Long-term Inflation Rate 1.5%.
Question: What are SPL tokens and how do they relate to Solana?: Answer: On Solana, tokens are typically implemented as SPL (Solana Program Library) tokens — the standard for representing and managing tokenised assets in the ecosystem.
Question: Why can Solana fees differ from the “usual”?: Answer: The transaction fee includes a base component and an (optional) prioritisation component added to increase the chance the current leader processes the transaction.