Company: OSOL
Filing Date: 2025-10-22
Form Type: S-1
Source: 0001493152-25-018952
Chunk: 11

Company: Osprey Solana Trust
Filing Date: 2025-10-22
Form: S-1
Chunk 11
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the “Solana Blockchain”). SOL can be used to pay for goods and services, including computational power on the Solana Network, or it can be converted to fiat currencies, such as the U.S. dollar, at rates determined on digital asset trading platforms (as defined herein) or in individual end-user-to-end-user transactions under a barter system. Furthermore, the Solana Network was designed to allow users to write and implement smart contracts—that is, general-purpose code that executes on every computer in the network and can instruct the transmission of information and value based on a sophisticated set of logical conditions. Using smart contracts, users can create markets, store registries of debts or promises, represent the ownership of property, move funds in accordance with conditional instructions and create digital assets other than SOL on the Solana Network. Smart contract operations are executed on the Solana Blockchain in exchange for payment of SOL. Like the Ethereum Network, the Solana Network is one of a number of projects intended to expand blockchain use beyond just a peer-to-peer money system. The price of SOL on public digital asset trading platforms has a limited history, and during this history, SOL prices on the Digital Asset Markets more generally, and on digital asset trading platforms individually, have been volatile and subject to influence by many factors, including operational interruptions. While the Index is designed to limit exposure to the interruption of individual Constituent Platforms, the Index Price, and the price of SOL generally, remains subject to volatility experienced by digital asset trading platforms, and such volatility could adversely affect the value of the Shares.

Proof of History and Proof of Stake Consensus

Solana is designed to be a base layer platform that will enable future developers the ability to build a wide variety of decentralized applications. Decentralized applications are applications that are designed to run without a middleman between the developer and the user. The Solana Network uses a variation of a decentralized Practical Byzantine Fault Tolerance protocol that leverages a Proof of History timestamp then Proof of Stake consensus mechanism. This means the Solana Network can achieve consensus on the propagation of blocks with a high number of transactions per second without a central authority and can tolerate attack as long as a super-majority of the stake of Solana is not controlled by the attacking entity.

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A consensus mechanism is protocol in the software that determines if all nodes in the network are synchronized and are in agreement about which transactions in a block are legitimate, and therefore if a block can be added to the permanent blockchain.

Traditional blockchains such as Bitcoin and Ethereum synchronize