Thread by @defi_india

1/ Prominent people in our country have recently claimed that #crypto tokens have no value - we think they just need education in this space.

Undeterred by the FUD and #cryptobandebate, DeFi India brings to you a thread on #Solana and it's token $SOL

2/ Solana $SOL is a decentralized blockchain built to enable scalable, user-friendly apps for the world.

Solana is the fastest blockchain in the world and is capable of supporting over 50,000 transactions per second (TPS) while maintaining block times of 400 milliseconds.

3/ Comparing that to trad alternatives; Visa claims a max TPS of 24,000 and Mastercard 5,000

#Solana can already operate at 10x the speed of Mastercard and txns cost $0.00025

Visa/Mastercard charge anywhere between 0.1-2.5% of every txn. The more you spend the more the fees.

4/ With #Solana - you pay a flat fee whether you transact $1 or $100 million.

Moreover, it's global. We don't even want to start counting the fees banks charge on FX & conversion for intl txns and remittances.

The World Bank actually thinks 7.68% fees is an accomplishment🥲

5/ It is proven that #Solana can scale to a whopping 710,000 TPS with today's hardware and it only gets faster thanks to Moore's Law.

A unique selling point for Solana is that everything is on Layer 1 aka everything is in one giant place.

Solana ensures composability

6/ between ecosystem projects by maintaining a single global state. This is extremely important for #DeFi, #NFTs and the #metaverse - not having to deal with fragmented Layer 2 systems or sharded chains is a HUGE win as it expands the design space for devs.

7/ On to the tokenomics: $SOL was minted with an initial supply of 500 million tokens in the % in the image.

$SOL has no hard-cap and is inflationary; though we note there is a dis-inflation mechanism built into the protocol. What this means is that

8/ $SOL has an inflation of 8% right now to bootstrap the protocol and incentivise participants but this inflation rate will drop by the dis-inflation rate of 15% p.a.

In short; the inflation rate will continue to decrease from 8% to 1.5% over the next few years as viewed below

9/ $SOL also enforces a 50% fee burn at this moment.

$SOL accrues value by 2 primary mechanisms - staking & transaction fees.

As the network demand grows so does the demand for staking $SOL for the yield and using $SOL for using the network.

10/ Critics of $SOL claim that it is not decentralized enough and there is some truth to it as there are currently ~1232 validators on #Solana vs 3150 nodes for #Ethereum and 13,044 for king #Bitcoin.

The Solana foundation is working on incentives to increase decentralization.

11/ Overall, DeFi India is very bullish on $SOL primarily because it is the only low-fee, high performance blockchain that can maintain a single global state.

This is a key unique selling point and vastly expands the design space of #DeFi, #NFTs and the #metaverse

12/ If you wish to dabble in the #Solana ecosystem DeFi India recommends trying out:

.@phantom for wallet
.@RaydiumProtocol $RAY for DEX (see for yourself the speed and txn cost)
.@StepFinance_ $STEP for ptf tracking and mgmt
.@mangomarkets for an onchain order book exchange

🙏