SOLANA TOKEN
GLOSSARY

A decentralized exchange protocol that uses liquidity pools and mathematical formulas instead of traditional order books to determine asset prices. AMMs enable trustless trading by allowing users to swap tokens directly against liquidity pools.

A distribution method where cryptocurrency tokens are sent to wallet addresses for free, typically as a marketing strategy or to reward early supporters. Airdrops are commonly used to increase token distribution and community engagement.

Special permissions on Solana tokens that control various aspects of token behavior. Mint authority allows creating new tokens, freeze authority can lock accounts, and update authority controls metadata changes. Removing authorities increases token trust.

An encoding format used for Solana addresses that avoids ambiguous characters (like 0, O, I, l). This makes addresses easier to read and less prone to errors when copying. All Solana public keys are displayed in Base58 format.

A distributed digital ledger technology that records transactions across many computers in a way that makes them virtually impossible to alter. Each block contains transaction data and is cryptographically linked to the previous block.

The process of permanently removing tokens from circulation by sending them to an inaccessible wallet address. Token burns reduce total supply, potentially increasing scarcity and value of remaining tokens.

The average time it takes to produce a new block on a blockchain. Solana has an exceptionally fast block time of approximately 400 milliseconds, enabling high-speed transaction processing.

An advanced AMM variant that allows liquidity providers to concentrate their capital within specific price ranges. This improves capital efficiency and reduces slippage for traders compared to traditional AMMs.

A space-efficient token format on Solana using Merkle trees to dramatically reduce storage costs. Compressed tokens can be up to 1000x cheaper to mint while maintaining full functionality.

The mechanism by which blockchain nodes agree on the current state of the network. Solana uses Proof of History combined with Proof of Stake for fast and efficient consensus.

A cryptocurrency wallet where a third party holds your private keys on your behalf. While convenient, this means you don't have full control over your assets. Non-custodial wallets like Phantom give you full ownership.

An organization represented by rules encoded as a computer program that is transparent and controlled by organization members rather than a central authority. DAOs use tokens for governance voting.

Financial services built on blockchain technology that operate without traditional intermediaries like banks. DeFi includes lending, borrowing, trading, and yield farming through smart contracts.

A peer-to-peer marketplace for cryptocurrency trading that doesn't require a central authority. DEXes like Raydium allow users to trade directly from their wallets using smart contracts.

Solana's test network where developers can experiment with applications using fake SOL tokens. Devnet mirrors mainnet functionality but has no real economic value, making it perfect for testing.

The number of decimal places a token supports. Solana tokens typically use 9 decimals (like SOL itself), meaning 1 token can be divided into 1 billion smallest units for precise transactions.

The token standard on Ethereum blockchain, similar to SPL tokens on Solana. ERC-20 defines a common interface for fungible tokens but with higher fees and slower transactions than Solana's SPL standard.

A token permission on Solana that allows freezing specific token accounts, preventing any transfers. Removing freeze authority is recommended for trustworthiness as it proves you cannot lock user funds.

The percentage of each trade that goes to liquidity providers as a reward. Common fee tiers are 0.05%, 0.25%, and 1%. Higher fees compensate for more volatile trading pairs.

A type of token where each unit is identical and interchangeable with any other unit of the same token. SPL tokens are fungible, unlike NFTs which are unique.

Transaction costs paid to blockchain validators for processing transactions. Solana has extremely low gas fees (typically under $0.01) compared to Ethereum's often expensive fees.

A cryptocurrency that grants holders voting rights on protocol decisions. Governance tokens enable decentralized decision-making for blockchain projects and DAOs.

A fixed-size alphanumeric string generated from data of any size using a cryptographic function. Hashes are used to verify transaction integrity and create unique identifiers.

Crypto slang derived from a misspelling of 'hold,' meaning to keep your cryptocurrency rather than selling. HODLers believe in long-term value appreciation regardless of short-term price movements.

A decentralized file storage protocol used for storing token metadata permanently. When you create a token, your image and description are uploaded to IPFS for immutable storage.

A temporary unrealized loss experienced by liquidity providers when the price ratio of pooled tokens changes. The loss becomes permanent only when liquidity is withdrawn during price deviation.

A MEV (Maximal Extractable Value) protection service for Solana that helps transactions avoid being front-run or sandwiched by malicious actors. SPL Token Launcher uses Jito bundles for secure transactions.

Identity verification requirements used by centralized exchanges and some DeFi protocols. Most decentralized token creation and trading doesn't require KYC.

The ease with which a token can be bought or sold without significantly affecting its price. High liquidity means trades can be executed quickly with minimal slippage.

A collection of tokens locked in a smart contract that enables decentralized trading. Liquidity providers deposit token pairs and earn fees from trades executed against the pool.

Someone who deposits tokens into a liquidity pool to enable trading. LPs earn a share of trading fees proportional to their contribution to the pool.

The primary Solana network where real transactions with actual value occur. Unlike devnet, mainnet SOL and tokens have real economic value and are used for production applications.

The total value of all tokens in circulation, calculated by multiplying the current price by the circulating supply. Market cap is used to compare the relative size of different cryptocurrencies.

Profit that validators or miners can extract by reordering, inserting, or censoring transactions within a block. MEV protection services like Jito help prevent exploitation.

A cryptocurrency created primarily for entertainment, community engagement, or viral marketing rather than utility. Many successful projects on Solana started as meme coins with strong communities.

Descriptive information about a token including its name, symbol, description, and image URL. Token metadata is stored on-chain or on IPFS and displayed in wallets and explorers.

A permission that allows creating additional token supply after initial creation. Removing mint authority is highly recommended as it guarantees the total supply cannot be increased.

A security feature requiring multiple private keys to authorize a transaction. Multisig wallets are used by DAOs and teams to prevent single points of failure.

A unique digital asset on the blockchain representing ownership of items like art, collectibles, or virtual real estate. Unlike SPL tokens, each NFT is one-of-a-kind.

A computer that maintains a copy of the blockchain and validates transactions. Solana has thousands of validator nodes worldwide ensuring network decentralization and security.

Data or transactions that are recorded directly on the blockchain. On-chain data is immutable and publicly verifiable, providing transparency and security.

A decentralized order book protocol on Solana that enables limit orders and advanced trading. Some DEXes combine AMM pools with OpenBook markets for enhanced functionality.

The most popular Solana wallet available as a browser extension and mobile app. SPL Token Launcher is officially whitelisted by Phantom, ensuring secure and seamless transactions.

A secret cryptographic code that proves ownership of a wallet and allows signing transactions. Never share your private key - anyone with it has complete control over your funds.

Solana's unique consensus innovation that creates a historical record proving events occurred at specific times. PoH enables Solana's high throughput of 65,000+ transactions per second.

A consensus mechanism where validators stake cryptocurrency as collateral to participate in block production. Solana uses PoS combined with Proof of History for efficient consensus.

Your wallet address that can be shared publicly to receive funds. Public keys are derived from private keys but cannot be used to access or move funds.

A fraudulent scheme where organizers artificially inflate a token's price through misleading promotion, then sell their holdings at the peak. Always research tokens thoroughly before investing.

The leading decentralized exchange (DEX) on Solana offering AMM and CPMM pools for token trading. SPL Token Launcher integrates directly with Raydium for liquidity addition.

A small SOL deposit required to keep accounts and data on Solana. Rent ensures blockchain storage is used efficiently. The rent is refundable when an account is closed.

A connection endpoint for interacting with Solana blockchain nodes. Applications use RPC endpoints to submit transactions, query balances, and access blockchain data.

A scam where developers abandon a project and run away with investor funds, typically by draining liquidity pools. Removing token authorities and locking liquidity helps prevent rug pulls.

A series of 12-24 words that can restore access to a wallet. Store your seed phrase securely offline - it's the master key to all your crypto assets.

The difference between the expected price of a trade and the actual execution price. High slippage occurs in low-liquidity pools or during volatile market conditions.

Self-executing code stored on the blockchain that automatically enforces agreement terms. Solana programs (smart contracts) power DEXes, lending protocols, and token functionality.

The native cryptocurrency of the Solana blockchain used for transaction fees, staking, and participating in DeFi. Creating and managing SPL tokens requires small amounts of SOL.

A high-performance blockchain known for fast transactions (~400ms), low fees (~$0.001), and high throughput (65,000+ TPS). Solana hosts thousands of DeFi applications and token projects.

A popular Solana wallet offering browser extension, mobile app, and hardware wallet support. Solflare is fully compatible with SPL Token Launcher.

Solana Program Library token standard - the primary token format on Solana, equivalent to ERC-20 on Ethereum. All tokens created with SPL Token Launcher follow this standard.

Locking cryptocurrency to support network security and earn rewards. SOL can be staked with validators to earn approximately 6-8% annual yield while helping secure the network.

Token supply metrics: Total supply is all existing tokens, circulating supply is tokens available for trading, and max supply is the theoretical maximum that can ever exist.

A digital asset created on a blockchain representing value, utility, or ownership. SPL tokens on Solana can represent currencies, rewards, governance rights, or any programmable asset.

The process of creating and deploying a new cryptocurrency token to a blockchain. SPL Token Launcher simplifies this process to just 4 steps with no coding required.

The economic model and distribution structure of a cryptocurrency including supply, allocation, vesting schedules, and utility. Well-designed tokenomics are crucial for long-term project success.

A measure of blockchain throughput capacity. Solana achieves 65,000+ TPS in ideal conditions, far exceeding Ethereum's ~15 TPS and enabling real-time applications.

A unique identifier for a completed blockchain transaction. Transaction signatures can be used to verify and track transactions on Solana explorers like Solscan.

Permission to modify token metadata after creation. Locking metadata (removing update authority) proves your token's information cannot be changed, increasing trust.

A node operator who participates in Solana's consensus by validating transactions and producing blocks. Validators stake SOL and earn rewards for their service to the network.

A custom token address containing specific characters (prefix or suffix) you choose. Vanity addresses make tokens more memorable and professional, enhancing brand recognition.

A schedule that gradually releases tokens over time rather than all at once. Vesting is used for team allocations and investor tokens to prevent immediate selling pressure.

Software or hardware for storing cryptocurrency private keys and managing digital assets. Popular Solana wallets include Phantom, Solflare, and Backpack.

The vision of a decentralized internet built on blockchain technology where users own their data and assets. Web3 applications include DeFi, NFTs, and decentralized social media.

An individual or entity holding a large amount of cryptocurrency that can significantly influence market prices through their trading activity.

A list of approved addresses or entities. SPL Token Launcher is whitelisted by Phantom wallet, meaning Phantom has verified our platform as safe and legitimate.

A token representing another cryptocurrency on a different blockchain. Wrapped SOL (wSOL) is SOL converted to the SPL token format for DeFi compatibility.

The practice of moving cryptocurrency between DeFi protocols to maximize returns. Yield farmers seek the highest APY by providing liquidity, staking, or lending.