Solana is a high-performance public blockchain network founded by Anatoly Yakovenko in 2017, aiming to become a secure, high-speed, low-cost public chain that supports the future decentralized web and resolves the inefficiencies in the Ethereum blockchain to provide a foundation for a wider range of DApps.
Since its mainnet launch in March 2020, Solana has further improved its network performance and resilience through multiple network upgrades, including QUIC, Quality of Service (QoS) weighted by stake, and an on-chain fee market.
Third-party teams like Solana Foundation, Solana Labs, Helius, and Superteam have further contributed to the development and growth of the Solana network and ecosystem. Solana Labs, in particular, has raised over $3.35 billion in private and public token sales and supports projects in various fields, including DeFi, consumer applications, DePIN, payments, and privacy.
Technical Features of Solana
Solana's network achieves high throughput and low latency transaction processing by integrating various innovative technologies and protocols, including the Proof of History (PoH) consensus algorithm, Tower BFT consensus algorithm, and parallel processing mechanisms.
The Proof of History (PoH) uses an encrypted clock to ensure fast transaction confirmation times. This algorithm timestamps each transaction, allowing nodes to verify its legitimacy quickly. This clock tracks all previous transactions, enabling nodes to instantly confirm the validity of new transactions.
The Tower BFT consensus algorithm also enables efficient agreement on the network's state among nodes. It is optimized compared to traditional Byzantine Fault Tolerance (BFT) to meet Solana's high-performance requirements. Developers use the Rust programming language, known for its performance and security, in Solana's network.
Some consider Solana's advantages as an "Ethereum killer" because it surpasses Ethereum in speed, throughput, and scalability, making it a popular choice among developers and users in recent years.
Solana's Tokenomics
From 2018 to 2022, the Solana team went through five financing rounds, starting with a $3.17 million seed round, then three private financing rounds, ultimately achieving a $20 million Series A financing. In March 2022, the team raised an additional $1.76 million through a public auction in collaboration with CoinList.
Solana employs the Proof of Stake consensus algorithm to incentivize token holders to validate transactions. SOL is Solana's native asset, and as part of Solana's security design, all fees are paid in SOL and subsequently burned, reducing the total supply. This mechanism encourages more token holders to stake their holdings, enhancing network security.
The initial supply of SOL was 500,000 tokens. The Solana team allocated tokens to early investors across the five financing rounds as follows:
- 15.86% for the seed round financing
- 9.54% allocated to the Series A financing
- 1.6% sold publicly to investors
- 12.5% allocated to founding team members
- 12.5% to the Solana Foundation, a nonprofit entity responsible for promoting and funding Solana initiatives
- 38% as a community reserve fund managed by the Solana Foundation
Solana's Team
Software engineer Anatoly Yakovenko first introduced Solana in 2017, publishing a white paper proposing the concept of Proof of History and how it optimizes blockchain throughput. Before entering the blockchain ecosystem, Yakovenko worked as a software engineer at Qualcomm and Dropbox.
After introducing the Solana project, Yakovenko collaborated with his former colleague from Qualcomm, Greg Fitzgerald, to create Solana Labs, a software development company responsible for building and maintaining the poh-based blockchain network. During this process, Yakovenko and Fitzgerald recruited more former Qualcomm colleagues.
Potential Concerns with Solana
The recent resolution of the SBF lawsuit is nearing completion, and the compensation amount from FTX to creditors remains substantial. According to the FTX shareholder report published in September, SOL represents the largest portion of assets held by FTX (including FTX.com, FTX.US, and Alameda), valued at approximately $2.3 billion based on the market price on November 2nd.
Blockchain data shows that FTX's multiple cold wallets collectively hold nearly 7 million SOL. The community speculates that the new management at FTX might conduct sales of its SOL reserves.
Furthermore, a report by Messari highlights concerns that the potential liquidation of more than 57 million SOL tokens by FTX might be unlocked in the fourth quarter of 2025.
Recent data from Solana Compass shows that during epoch 512, approximately 16.12 million SOL (approximately $370 million) were unlocked, with the address beginning with BZpEFk, marked as a16z, unlocking around 5 million SOL (approximately $115 million), and the address beginning with GCmFQ, also marked as a16z, unlocking around 2.03 million SOL (approximately $47.13 million) during epoch 512.
This suggests that, beyond FTX, large holders, including investment institutions, have accumulated a substantial amount of unlocked SOL and are potentially at risk of market selling, affecting its value.
For more analysis, please follow Aibit's media account for real-time updates! This article is for reference only, does not represent any position, and is not intended as investment advice. Investment is risky, caution should be exercised.
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