Note: The original text comes from @wangfeng_0128 who posted a long tweet.
Update/Communities that are optimistic about the new narrative of Solana ecosystem must have noticed the new asset protocol of Tiny SPL. At present, this market window is not too late. Many friends told me that the last time they felt so excited was when they saw Ordi in April last year. Yes, the first token of Tiny SPL is Peanut (NUTS). Based on the characteristics of NFT and Token two-way circulation, it will shift another new MEME paradigm. I am not worried about the motivation and ability of active developers in Solana ecosystem to build together.
I have seen a lot of tweets introducing it, including a long article by LK Venture team partner @leodeng08 the day before yesterday, which you can read:
https://twitter.com/leodeng08/status/1752351174043558125…
I'll just write one myself.
This article briefly summarizes why Tiny SPL is used. It is necessary to understand what state compression is and the two-way mechanism of cNFT and Token implemented around the new protocol.
Let’s look at the important time clues first:
On January 3, Anatoly Yakovenko, the co-founder of Solana who made Silly popular, retweeted and pinned the introduction of the "Tiny SPL" protocol on Twitter.
On January 20, Deez Nuts completed fundraising for 800 SOL / 400, 000 NUTS.
On January 27, Solana ecosystem’s new token standard Tiny SPL launched AMM trading.
On February 2, the transaction volume in the past 24 hours exceeded 30,000 SOL. As of my tweet, there are currently 8,592 addresses holding it.
What’s special about Tiny SPL?
The core value lies in the introduction of the "state compression" method, which allows users to hold tokens on Solana without paying storage rent. It is this compression process that makes this new protocol asset have the bidirectional characteristics of cNFT (compressed NFT) and Token equivalence and free exchange.
Storage rent? Yes, unlike Ethereum's Gas mechanism, the Solana account model uses the concept of "rent" to charge its network account a fee for storing data status. If an account cannot pay the rent, the system will delete the account to reduce the storage cost for data that is no longer maintained.
State compression method?
This compression method was launched by Solana in April 2023. The technical implementation principle is actually to compress the verifiability of the Merkle Tree into a Hash, allowing developers to store a small amount of data on the 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.
Cost Revolution
The problem is that as the price of SOL rises rapidly, the rental fees are getting more and more expensive. Tiny SPL sees this pain point and uses state compression on Solana to allow users to own tokens without paying rent. Through the Tiny SPL protocol, the cost of deploying NFTs on Solana can be ignored, which can save the most costs.
According to the Solana Foundation, as of April 5, 2023, it costs more than $250,000 to mint 1 million uncompressed NFTs on Solana. If state compression is used, the cost of minting these NFTs is approximately $110.
The Tiny SPL protocol is more like a technical experiment
Its application scenario may also be aimed at project parties that have a huge demand for issuing tokens. The current positioning of its token Deez Nutz is more like a combination of meme and NFT.
Realize the free two-way flow of NFT and Token
Through the Tiny SPL protocol, NUTS token ($NUTS) and cNFT (DEEZ NUTS is the name of NFT) can be exchanged at equal value. On the newly opened AMM Swap, if you sell cNFT of NUTS yourself, the NUTS token will be minted into the pool through routing and exchanged for SOL. When you buy NUT through its Swap, the token in the pool will be automatically destroyed, and a cNFT of the same amount of NUTS will be minted for you.
This innovation solves the liquidity problem that has long plagued NFT. All cNFT project parties can use the Tiny SPL protocol standard to convert into tokens, which can be used as IP and directly swap cNFTs.
About the token value of Peanut (NUTS)
$NUTS is the first token of the Tiny SPL protocol
Using fair random distribution freemint, random function mint, 100-1000, the total supply of NUTS is 2100w.
About the founder of Tiny SPL
@sol_idity
A full-stack engineer at Web3 payment infrastructure Sphere, after launching the Tiny SPL protocol, has been developing batch synthesis and AMM trading functions while constantly calling on birdeye, a DEX aggregator on Solana, to add an index to DN. Currently, the founders and the community are working together.
Therefore, the Tiny SPL protocol is a new infrastructure for Solana. Indeed, NFT-FT is probably just the tip of the iceberg. This new asset protocol on the Solana ecosystem has broken many inertias and stagnations in the past. After launching the Bitcoin ecosystem revolution on Ordinal, Tiny SPL has become a storage paradigm innovation on the Solana network.
Application Access:
https://tinys.pl
You can pay attention to the NFT market:
https://magiceden.io/marketplace/deez_nuts*Deez…
The transaction process of Nutz is more complicated than that of general meme coins.
*The interface is very GEEK and retro, similar to Windows 3.0 which just came out of DOS.
*After connecting the wallet, the page will detect the number of Neez Nutz you have and display it (if any). The Neez Nutz icon is two peanuts (NUTS)
*Tiny SPL’s logo is interesting, why is it an upside-down tree?
*The protocol is not open source at the moment. It is said to be released at the end of February.
