About Solana
What is Solana?
Solana (SOL) is a single-chain network built for high throughput. SOL is the native asset, used to pay transaction fees and to stake. Rather than splitting work across shards, every validator processes the same ledger, and Proof of History orders transactions so slots can advance in under a second. The three-layer reading of a price still applies: SOL is the asset unit, fiat is the quote unit, and an exchange print is one market at one moment.
Inflation tapers by rule, not by a fixed yield
New SOL comes from staking rewards, starting at 8% a year and falling by a fixed proportion annually until it reaches a 1.5% floor. The taper rate is an on-chain parameter and can be changed by governance: a vote in August 2026 raised it from 15% to 30% a year, roughly halving the time to the floor. Reading SOL supply therefore means knowing where the curve currently sits, not applying a number from an older article.
The cost of throughput shows up in the uptime record
Early versions lacked priority fees and local fee markets, so bursts of transactions crowded out network-critical messages and overwhelmed the chain. Between late 2020 and February 2024 the network halted several times, the longest being 17 hours in September 2021. Priority fees, QUIC transport and a second validator client have since addressed that class of failure. Judging this network means reading the uptime record alongside the throughput numbers.