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Anatoly Yakovenko published the white paper for Solana in November 2017. Around the same time, Solana Labs was founded by Anatoly Yakovenko, Greg Fitzgerald, Raj Gokal, and Eric Williams. Anatoly got the idea for the name from his favorite beach in California. In April 2020, the Solana Foundation took control of all IP protocols and the majority of the SOL that was being held by Solana Labs. This is a non-profit organization that helps facilitate and maintain the blockchain. Solana was designed with the idea of having a blockchain that was reliably synched. He thought simple synchronization would bring fast speeds. To do this, he came up with the idea of POH with POS mixed in.
Even though Solana has a POH mechanism, their blockchain runs on POS. The token is considered a governance token, so you can use it for voting power in the Solana network. The staking rewards sit around 5.9% APY. There is no true max cap on Solana as of now. They started with yearly inflation of 8% which will decrease every year by 15% until it hits 1.5%, which it will stay at.
POH/POS Token
Circulating Supply 459,923,198 SOL
Total Supply 577,568,169 SOL
Max Supply ∞
Solana has grown quickly in the short time that it has been able to let DApps be built on it. With the POH network, this allows them to achieve a very high TPS. Also, they can process several smart contracts at once. With the ability to have a high TPS and process smart contracts at a fast rate, gives Solana a lot of room to grow. They make it very easy for anyone to stake their tokens in their native wallet and give payouts every two days. Using the SOL token and navigating its ecosystem is easy and not complicated. It only gets difficult when trying to learn how everything ties together.
A major drawback for some is the fact that, for a brief second, all the block data is sent through one node to process. Unlike other chains that vote to set the next block, Solana compiles all the data from all the nodes through one random channel. If that node is compromised, it can cause problems for the blockchain. There are groups of people who do not like a token that will always be inflationary and prefer a fixed amount. The number of tokens held by the founders and VCs is very high and is a red flag to many crypto investors. The number of dapps built on the network is low when compared to other major chains, but this is primarily due to the fact that they have only been able to build smart contracts on their network since 2021.
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