The purpose of storing Solana (SOL) is to earn rewards, contribute to the security of the blockchain network, and possibly participate in network governance. When users stake Solana coins, they engage in the Proof of Stake process that supports the Solana network and validates transactions.
Detailed Explanation:
Earning Rewards:
Users stake Solana coins with network validators and receive rewards in the form of the currency itself.
Supporting the Network:
Through the staking process, users contribute to securing the Solana network, making it more resistant to attacks and increasing its reliability.
Participation in Governance:
In some cases, staking grants users voting rights in decisions regarding the development of the network.
Maintaining Value:
Some users choose to stake their coins as a long-term investment strategy aimed at preserving the value of their money and reducing risks.
Avoiding Inflation:
The burning mechanism adopted by Solana helps to reduce inflation of the currency in the long term.
Energy Efficiency:
Staking is considered more environmentally friendly than mining, as it consumes much less energy.
In summary, staking Solana offers users several benefits, including financial rewards, contributing to network security, and possibly influencing its future, all while reducing energy consumption.