Solana Labs Launches Leap Trading App With SOL Buybacks and Burns

Solana Labs launched Leap, a mobile trading app for its network, according to a November 6 report. Part of the app's trading fees will be used to buy back and burn SOL, the native token of Solana (SOL).

What Solana Labs Announced

Leap is a mobile trading app for the Solana network. Solana Labs said part of its fees will fund market purchases of SOL. The purchased tokens will then be burned. A burn sends tokens to an address that no one controls, which removes them from circulation. The company did not publish the share of fees used for the program or a burn schedule.

Solana Labs and Its Network

Solana Labs is one of the original teams behind the Solana layer 1 blockchain. Its engineering arm Anza now maintains Agave, the network's main validator client. A trading app with a built-in buyback and burn ties the product's revenue to SOL directly, because the size of each burn depends on how much the app is used. SOL traded near $90 on November 6, according to the Solana price chart on Coinranking.

Buybacks and Burns in Practice

A swap or trading app usually keeps its fee revenue. Leap instead routes part of that revenue into market purchases of the network's own token. A buyback removes tokens from the open market. The following burn removes them from circulation permanently, since burned tokens cannot be spent again. Programs like this scale with activity: more trading means more fees, and more fees mean larger burns.

What Is Still Unknown

The launch report does not say which markets the app covers or when the first buyback runs. It also does not say how the burns will be recorded. Solana Labs said only that part of app fees funds the program, and it published no targets, so the effect on supply cannot be measured yet.