What is Solana

(SOL) is a high-performance, proof-of-stake blockchain designed for speed, scalability, and low transaction costs, positioning it as a compelling alternative to Ethereum, especially for decentralized finance (DeFi) and NFTs OKXInvestopediaWikipedia. Its tokenomics feature a disinflationary model: starting with an annual inflation rate of around 8%, decreasing by roughly 15% each year, aiming for a long-term rate near 1.5% ParaFi TechSolanaCrypto.com. To offset inflation, Solana burns approximately 50% of each transaction fee, introducing deflationary pressure as network usage increases Crypto.comCryptomusCoinTeeth.

Recently, major banks including HSBC, Bank of America, and Euroclear are exploring Solana for tokenizing assets like stocks and bonds—highlighting its growing institutional adoption Financial Times.

Together, these features suggest that Solana’s blend of technical prowess, efficient economics, and real-world financial integration could fuel a more accessible and scalable future in digital finance.