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Solana Validator Economics: A Primer

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One of Solana’s main value propositions is its extremely low fees. Fees on Solana consist of a base fee and a priority fee. Currently, the base fee is set to 0.000005 SOL per signature with an optional priority fee that increases the likelihood of transaction inclusion within a given block. The natural question arises of how this fee structure can support a validator set without outside subsidies. In this piece, we break down the economics of validators on Solana for standard, non-archival nodes. While useful tools that detail the potential profit of validators have emerged, they often fail to explain or take into consideration all relevant costs. This article aims to provide a global viewpoint on Solana’s validator set rather than offering an analysis of a specific validator’s cost structures. Individual validators may be participating in additional out-of-protocol deals or offloading risk in a non-transparent manner. We also consider out-of-protocol rewards validators can opt into. F

Blog / Research Solana Validator Economics: A Primer Ryan Chern Research and Data Ryan Chern on X 13 min read January 11, 2024 Table of Contents Introduction One of Solana’s main value propositions is its extremely low fees. Fees on Solana consist of a base fee and a priority fee. Currently, the base fee is set to 0.000005 SOL per signature with an optional priority fee that increases the likelihood of transaction inclusion within a given block. The natural question arises of how this fee structure can support a validator set without outside subsidies. In this piece, we break down the economic

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