Solana (SOL) — Cash Flow & Quick Potential Overview
Solana is a high-performance blockchain, with the native token SOL used for transaction fees, staking, operating smart contracts & DeFi.
Notable Tokenomics:
Total supply of approximately ~590 million SOL, circulating supply ~520 million.
No fixed supply cap — SOL applies a gradually decreasing inflation model (from ~8%/year, decreasing by 15% each year → aiming for ~1.5%/year).
Approximately 50% of transaction fees on the network are burned, the remainder paid to validators/stakers → helps reduce supply pressure when network activity increases.
Real demand & staking:
Every transaction, DeFi, NFT, smart contract consumes SOL → practical demand depends on the level of ecosystem expansion.
Most SOL is currently staked, with a low amount of tokens circulating freely → reducing selling pressure and creating a more stable supply.
Cash flow scenarios:
• Short term: New projects, NFT/DeFi/bridge increase activity → more transaction fees → more burn → supply decreases → potential price waves.
• Medium term: Staking + dApp/NFT/DeFi adoption increases → steady cash flow from staking & demand for SOL usage → keeps demand stable.
• Long term: If the network continues to expand, attracting users & new capital + decreasing inflation → SOL may benefit from both utility + scarcity simultaneously.
