The state compression method is one of the reasons that attracted Helium Mobile to migrate to Solana.
By Joyce
On January 3, Anatoly Yakovenko, co-founder of Solana, who had previously popularized Silly, retweeted a tweet on his social media, bringing a lot of attention to a protocol called "Tiny SPL." According to the tweet, Tiny SPL is a new token standard protocol on Solana, introducing the "state compression" method, which allows users to hold tokens on Solana without paying storage rent.
The token asset based on Tiny SPL is "DN (Deez Nutz)," which was initially available for free minting. After the minting was completed, some users traded DN on Magic Eden. The floor price of DN plummeted after breaking through 0.2 SOL, and as of the time of writing, it was 0.00089 SOL.
From the perspective of price changes, the market's interest in Tiny SPL may not be high. However, Anatoly, co-founder of Solana, still has the retweeted tweet about Tiny SPL pinned to his Twitter homepage. The technological innovation "state compression" embodied by Tiny SPL was also a technological hotspot in the Solana ecosystem in 2023. Therefore, Tiny SPL may have new developments in the future.
Tiny SPL, a smaller version of SPL
"Rent" in Solana Accounts
Before introducing the special features of Tiny SPL, it is necessary to introduce the concept of "rent" in the Solana account model. Rent is different from transaction fees. Users pay rent to store data on the Solana blockchain. Transaction fees are paid to process instructions on the network.
Unlike Ethereum, Solana charges an account on its network for storing data state, i.e., rent. Rent is charged periodically based on the balance of tokens stored in the account. If the account cannot pay the rent, the system will delete the account to reduce the storage cost for data that is no longer maintained. If the assets in the account exceed the minimum balance of two years' rent, the account can be exempt from paying rent.
Although according to the official website, rent is derived from the underlying hardware storage cost. Therefore, with technological advancements and the decrease in hardware costs, rent is expected to decrease. However, rent is paid in SOL, so as the price of SOL rises recently, the actual rent paid by users will also increase. Asset management company VanEck mentioned in a valuation report on Solana that the storage cost for rent on Solana is 0.00000348 SOL per byte, with a wallet data size of 372 bytes, each active wallet holder must maintain a balance of 0.0026 SOL. Similarly, applications and token smart contracts must also maintain these storage costs. A program like Serum, which is about 340KB in size, needs to maintain a balance of 2.4 SOL to avoid paying rent.
Solana's token standard is SPL, and Tiny SPL aims to create a "smaller" version of the SPL token standard. Through state compression, users can own tokens without paying rent.
Attracting Helium Mobile to Migrate to Solana with the State Compression Method
State compression is a new method for storing data introduced by Solana in April 2023, which can significantly reduce the cost of on-chain storage. This technology relies on Merkle trees and can compress the verifiability of the data tree into a hash. The compression-friendly structure allows developers to store a small amount of data on-chain and update it directly in the Solana ledger, greatly reducing data storage costs while maintaining the security and decentralization of the Solana base layer.
The first application scenario of the state compression method was in NFT minting, which reduced the cost of minting NFTs on Solana by 2,400-24,000 times. According to the Solana Foundation, as of April 5, 2023, minting 1 million uncompressed NFTs on Solana cost over $250,000. The cost of minting NFTs using state compression is approximately $110.
The popular DePIN project Helium Mobile minted nearly 1 million NFTs when migrating to Solana last month, with a minting cost of only $113, which became a typical test case for the state compression method. These NFTs can serve as network credentials for Helium and verify hotspots, and can also integrate the functions of the entire ecosystem, including token access control and hotspot owner access rights.
Through the state compression feature, Solana can provide creators and brands with a way to provide a large number of NFTs to a wider audience without paying a large amount of costs. Now, Tiny SPL has applied the state compression method to token assets. Compared to tokens using the regular SPL standard, Tiny SPL tokens do not need to pay rent. In addition, Tiny SPL tokens will not be displayed in the user's wallet balance, but will only be visible in the NFT section.
Interaction Process of Tiny SPL
In terms of the interaction experience, the token management process of Tiny SPL is quite special. Currently, the token asset "DN (Deez Nutz)" based on this protocol has been fully minted, and interested readers can purchase it on the secondary market. Please note that DN does not have actual value, and this part of the content is only to introduce the interaction process of Tiny SPL and cannot be used as investment advice.
Visit the Tiny SPL official website https://tinys.pl/ and click on "Get started" to connect your wallet, it is recommended to use a test wallet with no large assets.
After connecting the wallet, the page will detect the quantity of Neez Nutz owned and display it (if any). The icon for Neez Nutz is two peanuts.
To trade token assets, you need to determine the quantity to be traded. In Tiny SPL, determining the trading quantity needs to be done through the "split" or "merge" process.
First, click on Neez Nutz to enter the token management interface. If you want to send 1 DN, you need to split 125 DN into 124 DN and 1 DN before the transfer. Here, 312 DN has been split into 112 DN, 109 DN, and 100 DN.
If you want to continue splitting, select the asset 100DN to be split and click "Split." Enter the quantity to be split on the pop-up page, and click "Split" after confirmation.
In the pop-up page of the wallet, confirm the signature. Here, you can see that the operation performed on the wallet side is "send 100DN, receive 99DN and 1DN."
After confirmation, wait for the following page to appear, indicating a successful split. Click "Done" to view the split tokens.
To merge Neez Nutz, select the DN to be merged and click "Combine" in the pop-up. The subsequent steps are the same as the split process.
After a successful split or merge, it will be reflected in the NFT section of the wallet, showing the Neez Nutz assets. The "2" here represents having 2 (different quantities) of DN, and then users can trade Deez Nuts as NFTs.
Forwarded by Anatoly, Worth Paying Attention to in the Future
sol_idity, the founder of Tiny SPL, is also a full-stack engineer at Sphere, a Web3 payment infrastructure. Currently, Tiny SPL seems more like a technical experiment. After the launch of Tiny SPL, the split and merge functions encountered issues, which have now been fixed. If Tiny SPL does have practical applications, it may be targeted at projects with a huge demand for token issuance. Currently, its token Deez Nutz seems more like a combination of meme and NFT.
In addition to technological innovations such as "state compression," Anatoly Yakovenko's retweet and pinning of tweets related to Tiny SPL are also reasons why Tiny SPL is worth paying attention to. As a co-founder of Solana, Anatoly's "pump and dump" effect is evident. The community is most familiar with the meme coin SILLY, which was derived from Anatoly's tweets and his dinosaur persona, and was the most popular meme on Solana last month, with the highest holder seeing a 27,000x return.
On January 2, Anatoly replied with a dragon emoji under a tweet related to the new meme coin "LFG" on Solana, and since then, the LFG token has risen by over 50%, reaching a new all-time high. However, it is important to note that the trading process of Deez Nutz is more complex compared to typical meme coins, and its narrative is not as interesting as SILLY. The potential for future development remains to be seen over time.
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