Solana is a $67b blockchain ecosystem (at the time of writing) touted as a cheaper, faster alternative to the Ethereum blockchain. Solana supports NFTs and boasts a diverse ecosystem, not limited to gaming, payments and trading.
However, the Economics of Solana have not been well thought through. Although Solana claims to be a decentralised solution, the Economics of the ecosystem incentivise centralisation.
To combat centralisation, Solana Labs / Solana Foundation have turned to supplying Validators with subsidies and relying on MEV to incentivise Validators to validate the blockchain.
To solve the tendency towards centralisation, an entire system design overhaul would be required.
This Analysis comprises of multiple parts, to be added in time.
Published: Part One: The Validators
Upcoming:
Part Two: JITO Labs & MEV
Part Three: Fee Burning
For suggestions or corrections of the analysis, please submit an Issue request. It would be much appreciated.