Company: OSOL
Filing Date: 2025-10-22
Form Type: S-1
Source: 0001493152-25-018952
Chunk: 139

Company: Osprey Solana Trust
Filing Date: 2025-10-22
Form: S-1
Chunk 139
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 is terminated and liquidated, the Sponsor will distribute to the Shareholders any amounts of the cash proceeds (or SOL) of the liquidation remaining after the satisfaction of all outstanding liabilities of the Trust and the establishment of reserves for applicable taxes, other governmental charges and contingent or future liabilities as the Sponsor will determine. Shareholders of record on the record date fixed by the Transfer Agent for a distribution will be entitled to receive their pro rata portions of any distribution.

Staking

The Trust Agreement provides that the Trust may engage in Staking at the Sponsor’s discretion, and the Trust has historically engaged in Staking. All Staking Rewards earned by the Trust are paid to the Sponsor. The Trust Agreement provides that the Trust may engage in Staking at the Sponsor’s discretion. At the Sponsor’s direction, the SOL Custodian has delegated substantially all of the Trust’s SOL to validator(s) on the Solana Network. Currently, all SOL staked by the Trust is delegated to GlobalStake, a non-custodial institutional staking platform, however, the Sponsor may direct the SOL Custodian to delegate the Trust’s SOL to one or more third-party validators (each a “Staking Provider”). As consideration for staking, the Trust receives network inflation and transaction fees, minus any fees paid to the Staking Provider, in the form of SOL (“Staking Rewards”) and are earned by the Trust as the Staking Provider with whom the Trust has staked its SOL validates transactions on the Solana Network. Staking Rewards are variable and, upon receipt, are paid to the Sponsor only. Under current Solana network protocols, staked SOL is subject to an “unbonding” that currently lasts approximately 0 to 2 days and, therefore, cannot be immediately withdrawn.

The Trust’s SOL Custodian has multiple layers of security protocols designed to protect the Trust’s assets from unauthorized access or transfer, which will remain in place when the Trust’s SOL is staked.

The Trust’s SOL will be staked directly from the Trust’s wallets and will not be transferred to any other wallet to be staked. The Solana protocol (a) mandates that the executor of the staking transaction (i.e., the Sponsor on behalf of the Trust) can execute the withdraw function at any time through the Trust’s wallets administered by the SOL Custodian and (b) limits the activities of the Staking Provider to executing only those activities specified by the protocol, such as staking, un-staking and performing validation activities. Accordingly, the St