Network-wide Benefits | elSOL

Network-wide Benefits Brought by elSOL

The widespread adoption of elSOL staking creates a positive cycle in which stakers, validators, and projects/traders benefit mutually and enhance each other's effectiveness. Below is a summary of the primary benefits gained by the entire network.

Enhanced Decentralization and Security

Growth of Mid-to-small Validators and Stake Distribution
- Validators become more capable of securing stakes through gauge voting, promoting the entry of new and mid-to-small validators, thereby enhancing network decentralization.
Improved Security in Proof of Stake Networks
- Increased decentralization directly strengthens security in Proof of Stake networks, enhancing fault tolerance and reliability of the blockchain.

High Transaction Efficiency and Liquidity

Stable, High-Speed Transaction Environment
- Projects and traders can efficiently achieve high-speed, stable trading environments by renting the exact bandwidth they require through the bandwidth leasing market.
Activation of the Solana Ecosystem
- Expanded utilization of QoS bandwidth enables stakers and DeFi projects to benefit from increased revenue through bandwidth leasing and improved liquidity, activating the entire ecosystem.
- These benefits attract new participants, generating a virtuous cycle of increasing users.

Multiple Revenue Streams

Diversified Income Opportunities
- Stakers can obtain additional income streams, including VLD token mining and bandwidth leasing, alongside traditional SOL staking rewards.
- This variety of incentives makes elSOL a stable and attractive investment opportunity, encouraging sustained, long-term contributions to the Solana network.

By facilitating mutually reinforcing interactions across the network, the introduction of elSOL promotes decentralization, enhances security, and optimizes network operation, achieving sustainable growth within the Solana ecosystem.