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Network

Inflation Rate

The annualized rate at which new SOL tokens are minted by the protocol to fund staking rewards. Solana launched with an initial inflation rate of 8% per year, which decreases by 15% of the current rate each epoch year (the 'disinflation rate'), gradually approaching the terminal inflation rate of 1.5%. As of 2025, the effective inflation rate is approximately 5.0%. The actual rate of SOL supply dilution depends on the percentage of total SOL that is actively staked.

IDinflation-rate
Plain meaning

Plain meaning

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The annualized rate at which new SOL tokens are minted by the protocol to fund staking rewards. Solana launched with an initial inflation rate of 8% per year, which decreases by 15% of the current rate each epoch year (the 'disinflation rate'), gradually approaching the terminal inflation rate of 1.5%. As of 2025, the effective inflation rate is approximately 5.0%. The actual rate of SOL supply dilution depends on the percentage of total SOL that is actively staked.

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Inflation Rate (inflation-rate)
Category: Network
Definition: The annualized rate at which new SOL tokens are minted by the protocol to fund staking rewards. Solana launched with an initial inflation rate of 8% per year, which decreases by 15% of the current rate each epoch year (the 'disinflation rate'), gradually approaching the terminal inflation rate of 1.5%. As of 2025, the effective inflation rate is approximately 5.0%. The actual rate of SOL supply dilution depends on the percentage of total SOL that is actively staked.
Related: Inflation, Terminal Inflation Rate, Staking Rewards
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Branch

Inflation

Solana's protocol-level mechanism for issuing new SOL to reward validators and stakers, starting at an initial annual inflation rate of 8% at genesis (Q1 2021) and decreasing by 15% of the current rate each year until reaching a long-term fixed rate of 1.5% per year. New SOL is minted each epoch proportionally to each validator's active stake and distributed as staking rewards; 50% of transaction base fees are burned, creating partial deflationary pressure. The net effective inflation rate depends on the proportion of SOL actively staked.

Validator
Open term
Branch

Terminal Inflation Rate

The long-term floor for Solana's annual SOL issuance rate, set at 1.5% per year. Once the decreasing inflation schedule reaches this target, the protocol will mint new SOL at a fixed 1.5% annual rate indefinitely to continue funding staking rewards. This terminal rate was chosen to balance validator incentives with SOL holders' desire to limit dilution. Transaction fee burns provide partial deflationary pressure against this base issuance.

SOL
Open term
Branch

Staking Rewards

SOL earned by validators and their delegators each epoch as compensation for participating in consensus and securing the network, funded by protocol inflation rather than solely transaction fees. Rewards are proportional to a validator's active stake and are credited at the end of each epoch to stake accounts automatically; the effective APY depends on the current inflation rate, the percentage of total SOL staked, and the validator's commission rate. Validators set a commission (0–100%) representing the fraction of rewards they keep before passing the remainder to delegators.

StakeEpoch
Open term
Next concepts to explore

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Network

Inflation

Solana's protocol-level mechanism for issuing new SOL to reward validators and stakers, starting at an initial annual inflation rate of 8% at genesis (Q1 2021) and decreasing by 15% of the current rate each year until reaching a long-term fixed rate of 1.5% per year. New SOL is minted each epoch proportionally to each validator's active stake and distributed as staking rewards; 50% of transaction base fees are burned, creating partial deflationary pressure. The net effective inflation rate depends on the proportion of SOL actively staked.

Open term
Network

Terminal Inflation Rate

The long-term floor for Solana's annual SOL issuance rate, set at 1.5% per year. Once the decreasing inflation schedule reaches this target, the protocol will mint new SOL at a fixed 1.5% annual rate indefinitely to continue funding staking rewards. This terminal rate was chosen to balance validator incentives with SOL holders' desire to limit dilution. Transaction fee burns provide partial deflationary pressure against this base issuance.

Open term
Network

Staking Rewards

SOL earned by validators and their delegators each epoch as compensation for participating in consensus and securing the network, funded by protocol inflation rather than solely transaction fees. Rewards are proportional to a validator's active stake and are credited at the end of each epoch to stake accounts automatically; the effective APY depends on the current inflation rate, the percentage of total SOL staked, and the validator's commission rate. Validators set a commission (0–100%) representing the fraction of rewards they keep before passing the remainder to delegators.

Open term
Network

Jito (MEV Infrastructure)

A Solana MEV infrastructure project by Jito Labs that operates a modified validator client (jito-solana), a Block Engine for bundle simulation and routing, and a tip distribution program that collects and distributes MEV tips to staked validators. Jito's client is run by a supermajority of Solana's stake-weighted validators, making its bundle and tip market the de-facto MEV layer for the network. Jito also operates a restaking and liquid staking protocol (JitoSOL) using proceeds from MEV tip redistribution.

Open term
Commonly confused with

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Networkterminal-inflation-rate

Terminal Inflation Rate

The long-term floor for Solana's annual SOL issuance rate, set at 1.5% per year. Once the decreasing inflation schedule reaches this target, the protocol will mint new SOL at a fixed 1.5% annual rate indefinitely to continue funding staking rewards. This terminal rate was chosen to balance validator incentives with SOL holders' desire to limit dilution. Transaction fee burns provide partial deflationary pressure against this base issuance.

Open term
Networkinflation

Inflation

Solana's protocol-level mechanism for issuing new SOL to reward validators and stakers, starting at an initial annual inflation rate of 8% at genesis (Q1 2021) and decreasing by 15% of the current rate each year until reaching a long-term fixed rate of 1.5% per year. New SOL is minted each epoch proportionally to each validator's active stake and distributed as staking rewards; 50% of transaction base fees are burned, creating partial deflationary pressure. The net effective inflation rate depends on the proportion of SOL actively staked.

Open term
Networkskip-rate

Skip Rate

The percentage of assigned leader slots in which a validator fails to produce a block, either due to being offline, misconfigured, behind on the fork, or unable to process transactions fast enough. A high skip rate indicates validator unreliability; it reduces staking rewards for both the validator and its delegators because skipped slots produce no block rewards. Solana publishes per-validator skip rates via the `getVoteAccounts` RPC method, and delegators use skip rate as a key signal when selecting validators.

Open term
Related terms

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Networkinflation

Inflation

Solana's protocol-level mechanism for issuing new SOL to reward validators and stakers, starting at an initial annual inflation rate of 8% at genesis (Q1 2021) and decreasing by 15% of the current rate each year until reaching a long-term fixed rate of 1.5% per year. New SOL is minted each epoch proportionally to each validator's active stake and distributed as staking rewards; 50% of transaction base fees are burned, creating partial deflationary pressure. The net effective inflation rate depends on the proportion of SOL actively staked.

Open term
Networkterminal-inflation-rate

Terminal Inflation Rate

The long-term floor for Solana's annual SOL issuance rate, set at 1.5% per year. Once the decreasing inflation schedule reaches this target, the protocol will mint new SOL at a fixed 1.5% annual rate indefinitely to continue funding staking rewards. This terminal rate was chosen to balance validator incentives with SOL holders' desire to limit dilution. Transaction fee burns provide partial deflationary pressure against this base issuance.

Open term
Networkstaking-rewards

Staking Rewards

SOL earned by validators and their delegators each epoch as compensation for participating in consensus and securing the network, funded by protocol inflation rather than solely transaction fees. Rewards are proportional to a validator's active stake and are credited at the end of each epoch to stake accounts automatically; the effective APY depends on the current inflation rate, the percentage of total SOL staked, and the validator's commission rate. Validators set a commission (0–100%) representing the fraction of rewards they keep before passing the remainder to delegators.

Open term
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Network

Mainnet Beta

Solana's primary production cluster where real SOL and real economic activity occur; the "beta" designation reflects the network's ongoing protocol development despite being fully live since March 2020. It uses the same architecture as other clusters but with real validator stakes, live staking rewards, and permanent on-chain state. All production dApps, tokens, and NFTs exist on Mainnet Beta.

Open term
Network

Devnet

A persistent public Solana cluster intended for application development and testing, running the same software version as Mainnet Beta but with no real economic value. Devnet SOL can be freely airdropped via the CLI or faucet APIs, and the ledger may be reset periodically by Solana Labs. Developers use Devnet to test programs and integrations before deploying to Mainnet Beta.

Open term
Network

Testnet

A public Solana cluster used primarily by the Solana core team and validators to test new software releases, performance benchmarks, and network upgrades under real network conditions before they reach Mainnet Beta. Testnet SOL has no monetary value, and the ledger is reset more frequently than Devnet; it is less suitable for application development and more suited for validator operators validating their infrastructure.

Open term
Network

TPS (Transactions Per Second)

The rate at which a Solana cluster processes and commits transactions; Solana's theoretical maximum exceeds 65,000 TPS due to its parallel execution model, though real-world sustained throughput on Mainnet Beta typically ranges from 2,000–5,000 non-vote TPS under normal load. Vote transactions (used for consensus) make up a significant portion of all on-chain activity and are counted separately. High TPS is enabled by Proof of History timestamps, Sealevel parallel execution, and Gulf Stream mempool-less forwarding.

Open term