Home / Advanced Topics / Economics
Pump.fun
CA: kahuna123

Solana Economics

Understanding Solana's tokenomics and fee structure

Learn about Solana's economic model, including inflation, transaction fees, and how value flows through the network.

SOL Token Overview

  • Ticker: SOL
  • Initial Supply: 500 million tokens
  • Current Circulating Supply: ~400+ million SOL
  • Smallest Unit: 1 lamport = 0.000000001 SOL
  • Use Cases: Transaction fees, staking, governance

Inflation Schedule

Solana has a disinflationary model:

  • Starting Inflation: 8% annually
  • Disinflation Rate: -15% per year
  • Long-term Rate: 1.5% annually (terminal inflation)

New SOL tokens are minted to reward validators and stakers, incentivizing network security.

Transaction Fees

💸

Base Fee

~$0.00025 per transaction (5,000 lamports)

📊

Compute Units

Programs consume compute units; more complex programs cost more.

🔥

Fee Burning

50% of transaction fees are burned, reducing supply.

💰

Validator Rewards

50% of fees go to validators who process transactions.

Rent Economics

Accounts must pay "rent" to store data on-chain:

  • Rent-Exempt Threshold: ~2 years of rent upfront
  • Typical Cost: ~0.00089088 SOL per kilobyte
  • Purpose: Prevent blockchain state bloat
  • Reclaim: Close accounts to recover rent

Staking Yields

Staking rewards come from:

  • Inflation Rewards: New SOL tokens minted
  • Transaction Fees: Share of network fees
  • MEV: Maximal Extractable Value opportunities

Typical APY: 5-7% (varies based on network activity and stake distribution)

Token Distribution

Initial SOL distribution:

  • 38.1% - Community/Ecosystem
  • 25.5% - Foundation
  • 12.5% - Seed Sale
  • 10.0% - Validator Sale
  • 12.8% - Team & Advisors
  • 1.1% - Strategic Sale

Economic Security

🔒

Network Security

Higher SOL price = more expensive to attack the network.

⚖️

Stake Distribution

Decentralized stake prevents single-point-of-failure.

🎯

Incentive Alignment

Validators earn more by securing the network properly.

📈

Economic Growth

Network usage drives value for SOL holders.

Resources