The launch of Trump and Melania’s tokens brought significant trading volume to Solana, causing network congestion. Solana’s blockchain explorer had not reported any new transactions up until 9:43 PM UTC on January 19. Users also reported “500 Internal Server Errors” while transacting on Solscan.

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Solana’s Challenges and Rising Concerns

A major outage in February 2024 forced Solana validators to restart the network after block production stalled. However, Solana claims to have maintained 100% uptime over the past 90 days with no outages since February 6, 2024.

Memecoin Distribution and Investor Concerns

The Trump family’s memecoins gained mainstream attention, but their token allocations have raised red flags for investors. The MELANIA token website claimed that 35% of the tokens were allocated to the team, 20% to both the treasury and the community, 15% to the public, and 10% for liquidity. However, blockchain analytics platform Bubblemaps stated that nearly 90% of the token supply was in a single wallet, not matching the claimed distribution.

TRUMP Token’s Market Performance

Trump’s TRUMP token saw a $5 billion drop in market cap within 40 minutes after the launch of MELANIA, with its price falling by 38% from $74.6 to $45.9. As of 9:08 AM UTC, the TRUMP token was trading at $57.50, down 3.3% in the past 24 hours.

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Surge in User Activity Caused Network Strain

The congestion stemmed from a surge in user activity driven by a meme coin trading frenzy. Transaction volumes soared to as high as $4 billion in March, a significant increase from the usual daily figures below $500 million in 2023. This spike in activity, coupled with an influx of bots, led to a rise in “failed” transactions, even though they were submitted successfully.

Prioritizing Transactions for Network Stability

The new update aims to alleviate congestion by prioritizing transactions from “good” validators, those with a larger stake (ownership) in the network. This prioritization ensures that high-quality validators receive better service, preventing malicious actors from flooding the network with low-quality transactions.

Continuous Improvement Through Updates

Version 1.17.31 is the first in a series of planned updates to address network congestion. Additionally, version 1.18 is currently undergoing testing on a separate network to identify and fix potential issues before deployment on the mainnet.

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