Validators process transactions and receive fees from users (supply-side fees).

Solana is a smart contract platform for decentralized applications (a blockchain). Solana was founded by Anatoly Yakovenko, Greg Fitzgerald, Raj Gokal, etc. and launched in 2020.

SOL holders own and govern the protocol. They currently take a cut of the transaction fees paid by users (revenue). Solana’s investors include Polychain Capital, ParaFi capital, Passport capital, etc.

governance

github

twitter

discord

etherscan

website

Blockchains (L1)

Solana

# Solana Token incentives Methodology

## 1. Overview

Token incentives for Solana measures the value of native SOL distributed to network participants as compensation for securing the network and participating in governance. These distributions are primarily directed toward validators and delegators who engage in staking and voting activities. This metric is analogous to stock-based compensation in traditional finance, as it represents the economic cost of native asset issuance used to incentivize the supply-side participants of the blockchain.

## 2. Data sources

- **Blockchain events**: `staking` and `voting` reward records, covering Solana
- **External data**: End-of-day price feeds for the native SOL asset

## 3. Step-by-step calculation

### Component A: Reward record extraction

- **Purpose**: Identifies native asset distributions related to network security and governance
- **Logic**: Reward records are extracted from the Solana rewards system. Only records categorized as `staking` or `voting` reward types are included in the calculation. These records represent the inflationary rewards issued to accounts participating in the network's consensus and validation processes.
- **Key fields**: `reward_type`, `lamports`, `block_timestamp`

### Component B: Asset normalization

- **Purpose**: Converts raw reward values into native SOL units
- **Logic**: Reward amounts are captured in lamports from the underlying reward records. These values are normalized by decimal precision to represent the quantity in native SOL.
- **Key fields**: `lamports` (normalized by 1,000,000,000)

### Component C: USD conversion and daily aggregation

- **Purpose**: Standardizes the value of incentives in USD for analysis and cross-chain comparison
- **Logic**: Daily totals of native SOL incentives are multiplied by end-of-day price feeds. The data is aggregated at a daily granularity based on UTC day boundaries. For any days where rewards are not present, the metric is filled with zeros to maintain a continuous time series.
- **Key fields**: `token_incentives`, `price_usd`, `timestamp`

_This methodology was automatically generated by Token Terminal's methodology analyzer._

Value of native tokens distributed as incentives.

SolanaSOL

Token incentives

Token incentives

Competitive landscape