Solana terminology glossary

AMM (Automated Market Maker)

A program that sets token prices from a liquidity pool formula instead of an order book. On Solana, Raydium and Orca are common AMMs. Memecoin traders often first meet AMMs when swapping SOL for a new token on Jupiter, which routes through several pools.

Bonding curve

A pricing curve where token cost rises as more supply is bought. Pump.fun popularized bonding curves for memecoin launches: early buyers pay less per token; the curve graduates to a Raydium pool when a cap is hit.

Burn

Permanent removal of tokens from circulation by sending them to an unspendable address. Some projects burn supply to reduce float; verify burns on Solscan rather than trusting announcement screenshots.

Dev wallet

The wallet that deployed or controls a token mint. A high dev-wallet balance after launch can mean the creator can sell into your buy order. Check mint and freeze authority on the token page.

FDV (Fully Diluted Valuation)

Token price multiplied by total supply, including locked or unminted tokens. Memecoin hype often quotes market cap on circulating supply while FDV is ten times higher — a common source of mispriced expectations.

Freeze authority

Power to halt transfers of a token. If freeze authority is retained by the creator, holders can be locked from selling. Many legitimate tokens renounce freeze authority at launch; absence of renounce is a yellow flag, not automatic proof of scam.

Jito tips

Optional payments to Solana validators via Jito for transaction priority during congested blocks. Memecoin snipers use tips to land buys in the first slots; ordinary readers pay higher network fees during these windows.

Liquidity pool (LP)

Two-sided reserves (e.g., TOKEN/SOL) that enable swaps. Depth matters: thin pools mean large slippage. Locked LP means the provider cannot withdraw liquidity for a set period — verify lock contracts, not just Discord claims.

LP burn

Sending LP tokens to a burn address so liquidity cannot be pulled. Often cited as anti-rug proof; still check whether mint authority and unrelated dev wallets remain active.

Memecoin

A token whose value is driven primarily by community narrative, humor, or trend rather than cash flows or protocol revenue. On Solana, most memecoins launch via pump.fun or similar with low initial liquidity and high volatility.

Mint authority

Ability to create new tokens. If retained, supply can inflate after you buy. Renounced mint authority means no further tokens can be minted — confirm on-chain, not from a pinned tweet.

Rug pull

When creators drain liquidity or sell insider supply, collapsing price. On Solana this often means removing LP or dumping dev allocation in the first hour. Red flags include unlocked LP, concentrated holders, and anonymous teams with no on-chain history.

Slippage

Difference between expected swap price and executed price. Memecoin pools with low SOL depth can show 10–30% slippage on modest buys. Set slippage tolerance in your wallet deliberately — auto-max invites bad fills.

Snipe

Buying a token in the first blocks after launch, often with bots or Jito tips. High risk: you may buy into creator sell walls or honeypot contracts if you have not read the mint setup.

SPL token

Solana's standard for fungible tokens (like ERC-20 on Ethereum). Every memecoin you trade on Solana is an SPL token with a mint address you can inspect on Solscan or SolanaFM.

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