The Solana coin is a native coin of the blockchain of the same name. It can be used as a means of settlement between participants in a distributed registry, to ensure the operation of smart contracts, as well as decentralized applications. But the principle of issuing coins is slightly different from those used in other similar projects.
How many coins are in circulation
According to information on coinmarketcap.com, developers will release 489 million coins into circulation within the blockchain. About 260 million of them are already in circulation. They are distributed among the participants, as well as developers as follows:
- 16% sold to investors at the stage of attracting investments before the initial coin offering (ICO) for open sales;
- 13% allocated for the main sale and available for purchase by investors;
- 13% transferred to developers and distributed among them;
- 10% donated to the Solana fund.
The remaining coins from the total available volume are either not yet released for circulation, or are on free sale in a public or private format.
Like all digital money, the Solana coin is not backed by tangible assets. But the Solana blockchain is ideal for practical applications in the field of decentralized finance. Therefore, the value of the crypt is constantly increasing due to the increasing demand for the platform.
As of last summer, about 250 decentralized finance applications, as well as non-fungible tokens, were already running within Solana. For example, one of the most famous projects is Serum, which was launched by the FTX exchange.
A community of over 80,000 members has formed around Solana. They created a group in the Telegram messenger, which once again confirms the promising project. Participants in the system maintain the network by creating validator nodes. Their number is constantly growing, that is, the liquidity of the coin is maintained and increased.
What is the Solana coin used for?
The native coin of the Solana blockchain is, first of all, needed to ensure the operation of the platform. The main functions and ways of using the coin:
- First, application management. SOL is used to execute programs on the blockchain and verify data on the blockchain.
- Second, payments. With the help of a coin, due to the high speed of data processing, micropayments can be made. For this, a fractional unit, the lamport, was created. It is 0.000000001 SOL. The name comes from the US scientist who helped develop the blockchain.
- Thirdly, commission. In sols, payment is charged for making payments between blockchain participants.
- Fourth, staking. SOL is used to validate transactions on the network and join new blocks using the staking method. That is, the validating nodes block some of the coins in their wallet and, thereby, support the operation of the distributed ledger.
Now SOL is the 6th currency in terms of capitalization, the rate of which is more than 135 dollars per unit