Company: OSOL
Filing Date: 2025-10-22
Form Type: S-1
Source: 0001493152-25-018952
Chunk: 24

Company: Osprey Solana Trust
Filing Date: 2025-10-22
Form: S-1
Chunk 24
---
 as “proof-of-stake.” While their proponents believe that they may have certain advantages, the “proof-of-stake” consensus mechanisms and governance systems underlying many newer blockchain protocols, including the Solana Network, and their associated digital assets – including the SOL held by the Trust – have not been tested at scale over as long of a period of time or subject to as widespread use or adoption as, for example, Bitcoin’s proof-of-work consensus mechanism has. This could lead to these blockchains, and their associated digital assets, having undetected vulnerabilities, structural design flaws, suboptimal incentive structures for network participants (e.g., validators), technical disruptions, or a wide variety of other problems, any of which could cause these blockchains not to function as intended, lead to outright failure to function entirely causing a total outage or disruption of network activity, or to suffer other operational problems or reputational damage, leading to a loss of users or adoption or a loss in value of the associated digital assets, including the Trust’s assets. Over the long term, there can be no assurance that the proof-of-stake blockchain on which the Trust’s assets rely will achieve widespread scale or adoption or perform successfully; any failure to do so could negatively impact the value of the Trust’s assets.

| 20 |

If a malicious actor or botnet obtains control of a sufficient amount of the validating power on the Solana Network, or otherwise obtains control over the Solana Network through its influence over core developers or otherwise, such actor or botnet could manipulate the Blockchain to adversely affect the value of the Shares or the ability of the Trust to operate.

The Solana Network is currently vulnerable to several types of attacks, including:

| ● | “33%                                                                                                                                     
 attack” where, if a validator or group of validators were to gain control of more than 33% of the total staked SOL on the Solana         
 Network, a malicious actor could temporarily impede or delay block confirmation or even cause a temporary fork in the blockchain.        |
| ● | “50%                                                                                                                                     
 attack” where, if a validator or group of validators acting in concert were to gain control of more than 50% of the total staked         
 SOL on the Solana Network, a malicious actor would be able to gain full control of the Solana Network and the ability to manipulate      
 the blockchain on a forward-looking basis, including censoring transactions following the achievement of threshold, double-spending      
 and fraudulent block propagation, while the attacker maintains the threshold. In theory,