Company: SLMT
Filing Date: 2025-11-18
Form Type: 424B5
Source: 0001213900-25-112135
Chunk: 11

Company: Brera Holdings PLC
Filing Date: 2025-11-18
Form: 424B5
Chunk 11
---
 to their stake, which makes it extremely costly for bad actors to attempt to control the network and
add invalid transactions to the blockchain. Validators receive staking rewards for the work they perform, which further incentivizes validators
to behave properly, as they would otherwise miss out on such rewards. Other proof-of-stake networks often “slash” some or
all of a validator’s stake if it intentionally or unintentionally performs its duties poorly, for example, by double-signing a transaction,
though Solana has not implemented slashing at this time. In addition to its use within consensus, SOL is also a “gas token”,
meaning that users of the Solana blockchain pay SOL to validators (and delegators) as compensation for processing their transactions.

We see three particularly notable items giving
Solana a technical advantage compared to many smart contract blockchain peers. Solana’s proof-of-history gives validators a notion
of time and allows them to produce blocks without requiring the network to first agree upon the current block, resulting in speed advantages.
Further, unlike peer blockchains that often use single-threaded virtual machines, Solana enables parallel transaction execution to increase
throughput and take advantage of future hardware improvements resulting from increased CPU core counts. In addition, Solana is optimized
for speed and security, and is naturally growing into decentralization as hardware and bandwidth costs fall over time, positioning it
well along the Blockchain Trilemma.

While Solana Labs and the Solana Foundation have
played important roles in the development of the Solana ecosystem, no single entity owns or controls the Solana network. However, concentration
of influence in these entities, particularly in early-stage protocol governance, presents risks that investors should consider.

The Solana Ecosystem

Solana’s performance and technical capabilities
enable many use cases from DeFi to decentralized physical infrastructure networks, AI agents, social media, gaming, stablecoins, real-world
assets, among others. We believe Solana is advantaged by best-in-class technology and strong network effects that have attracted a large,
growing, and vibrant ecosystem of users, developers, and decentralized applications.

Regulations

Depending on the regulatory characterization of
Solana, the markets for cryptocurrency in general, and our activities in particular, our business and our Solana acquisition strategy
may be subject to regulation by one or more regulators in the United States and globally. Ongoing and future regulatory actions may alter,
to a materially adverse extent, the nature of digital assets markets, the participation of industry participants, including service providers