Glossary

A tool or actor that bundles multiple transactions into one block — e.g. to make many wallets buy simultaneously at a token launch.

Solana's unit of program execution cost. Every instruction consumes CUs, every block has a CU limit. Priority fees scale with fee-per-CU.

Mechanism that lets one Solana program call another. The foundation of nearly every DeFi operation — limited to four nested levels.

Token-2022 extension that fully blocks transfers — the token can only be held, burned, and the account closed. Soulbound on Solana.

Anza's Pinocchio-based rewrite of the classic SPL Token program — same program ID, 95 to 98 percent fewer compute units per operation.

Anza's Rust library for Solana programs — no_std, zero-copy, significantly more compute-efficient than the classic solana-program crate. The basis of P-Token.

A cryptographic timing mechanism that gives transactions a verifiable order — Solana's core innovation for high speed.

Solana's formal proposal process for protocol changes. Analogous to Ethereum's EIPs. Examples: SIMD-0266 P-Token, SIMD-228 inflation, SIMD-0096 stake mechanics.

Token-2022 extension that stores name, symbol, URI, and custom fields directly in the mint — no separate Metaplex account needed.

Solana's second token standard with over 20 optional extensions for compliance, UX, and programmable money — the foundation for PYUSD, USDG, and EURC.

A group of wallets that, per on-chain traces, is likely controlled by the same person or group — identifiable through funding and interaction patterns.

Token-2022 extension that encrypts token balances and transfer amounts via zero-knowledge proofs — privacy with an optional auditor key for compliance.

Token-2022 extension that creates new token accounts in the frozen state by default. The basis for allowlist stablecoins and KYC gates.

Token-2022 extension with a global pause switch — authority can stop all transfers, mints, and burns in one move. Classic TradFi emergency tool.

Token-2022 extension where an authority set by the issuer can transfer or burn any token account at any time. Both compliance tool and rug vector.

A scam pattern where project insiders pull liquidity or funds and leave the project worthless. Common with anonymously launched tokens.

A sequence of usually 12 or 24 words from which all of a wallet's private keys are derived. The ultimate backup — never share it or store it online.

An attack where a single party creates many seemingly independent identities or wallets — e.g. to manipulate airdrops or votes.

Token-2022 extension that invokes an issuer-defined program on every transfer — for allowlists, KYC checks, royalties. A new reentrancy class on Solana.

Decentralized financial services on the blockchain — swapping, lending, borrowing without banks or intermediaries.

Token-2022 extension that stores an interest rate in the mint. The displayed token balance grows via UI multiplier — without changing on-chain supply.

A smart-contract pool of two or more tokens that enables trading on a DEX. Liquidity providers deposit capital and earn a share of the fees.

Token-2022 extension that withholds a protocol fee in basis points per transfer — taken from the recipient, not the sender. For RWAs and royalty splits.

Token wrapper for native SOL that moves SOL in token form through the SPL Token program. Required for DeFi pools and CPI-based programs.

The secret cryptographic key that grants access to a wallet and signs transactions. Whoever holds it controls the assets.

Software or hardware for managing cryptocurrencies. Stores private keys and enables transactions.

Staking method where you receive a tradeable token (e.g., mSOL, JitoSOL) and can keep using your SOL in DeFi.

A network node that processes transactions and secures the blockchain. Validators receive SOL as reward.

A Solana variant of NFTs that compresses data via Merkle trees, cutting the cost per NFT to fractions of a cent.

The distribution of tokens to many wallets, often as a reward for early usage. Also a common lure for phishing and fake airdrops.

A decentralized exchange where tokens are swapped directly from your own wallet — without a central custodian. On Solana e.g. Jupiter, Raydium, Orca.

Market cap = price × circulating supply. FDV (fully diluted valuation) = price × total supply including tokens not yet released.

The difference between the expected and actual execution price of a trade. Caused by price movement and limited liquidity between order and execution.

Artificial trading volume created by buying and selling between wallets of the same party to fake activity or liquidity.

A decentralized, tamper-resistant ledger that stores transactions in chained blocks — distributed across many independent computers.

A program on the blockchain that runs automatically when defined conditions are met. On Solana these are called 'programs'.