Overview of the SPL Governance Token

• SPL is a governance token for Serum DEX on Solana, used for voting and staking to guide development.
• Originally, it has a 10 Billion total supply, and top holders like the Serum Foundation control and promote its decentralization.
• SPL provides utility-like fee discounts and access to new features beyond governance abilities.

The SPL governance token is the native token of the Serum decentralized exchange (DEX) on the Solana blockchain. The SPL token was launched in 2020 and is used for governing the Serum DEX through voting and staking. The SPL token gives holders a say in developing and governing the Serum protocol

Utility and functionality

The SPL token has several key utilities and functions on the Serum platform. Firstly, SPL holders can vote on protocol changes of the Serum DEX. Voting allows holders to determine future upgrades, fee structures, etc. The more SPL a user holds, the more voting power they have. Secondly, SPL tokens can be staked to earn rewards. By staking SPL, token holders help secure the network in exchange for rewards distributed as additional SPL tokens. The staking rewards incentivize holding SPL long-term and provide stability to the platform. 

In addition to voting and staking, SPL discounts trading fees on the Serum DEX. So the more SPL a user holds, the higher the discount on fees they receive. This ties the utility of the token to activity on the exchange. Finally, holding SPL may allow access to new features added to the Serum ecosystem over time. The development team has hinted at upcoming benefits for SPL holders.

Distribution, supply, and holdings

The initial supply of SPL tokens totaled 10 Billion at launch. Half of this supply, 5 Billion tokens, was distributed to members of the Serum community through liquidity mining rewards. The remaining 5 Billion tokens were split between the Serum founding team (20% – 2 Billion), investors (15% – 1.5 Billion), the Solana Foundation (10% – 1 Billion), and advisors (5% – 500 Million).

Looking at market structure, SPL has around $285 Million in market capitalization, ranking 165 overall in crypto. Daily trading volume is around $8 Million, primarily on FTX and Raydium. So, SPL has carved out a nice niche in the Solana ecosystem.

The SPL governance token is the native utility token of the Serum DEX on Solana. It gives holders voting rights, staking rewards, fee discounts, and access to new features. 

SPL currently sits just outside the top cryptocurrencies in terms of market capitalization. It facilitates governance and alignment between the Serum community and core developers. With active trading volume and a defined understanding, SPL looks positioned to continue growing in prominence along with expanding the Serum ecosystem.