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2. The Problem

Despite the technological leaps made by Solana, fundamental friction points remain for "Real-World Assets (RWA)" and payment integrations.

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2.1 The "Gas Token" Barrier

In the current L1 architecture, if a user wants to send 10 USDC, they must hold SOL in their wallet to pay for gas.

  • The Issue: This forces new users to go through a complex KYCd exchange process to buy SOL, strictly to use a stable asset. This is the single biggest churn point for non-crypto natives.

  • The Reality: Imagine needing to buy Apple Stock to send a text message on an iPhone. That is the current UX of L1 blockchains.

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2.2 Volatility in Fee Markets

Solana's Priority Fee structure is efficient for preventing spam, but it introduces unpredictability for payment apps.

  • Cost fluctuation: During high network congestion (e.g., an NFT mint or memecoin frenzy), the fee to send a simple payment creates a "spiky" cost structure.

  • Business Risk: For a payment gateway processing millions of micro-transactions, unpredictable fees make business modeling impossible.

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2.3 The "Real-Time" Illusion

While Solana is fast (400ms block times), true "Retail Real-Time" requires instant confirmation feedback loops (sub-100ms) typically found in centralized databases. Waiting for block inclusion and subsequent confirmations creates a lag that feels "slow" in point-of-sale (POS) environments.

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2.4 Tokenomics Inflation

Most L1 and L2 chains incentivize node operators through inflationary rewards (minting new tokens). This dilutes the token value over time.

  • The Frogment Question: Can we build a chain where the usage of the chain (stablecoin volume) directly rewards operators without printing new tokens out of thin air?

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