SDA Token Glossary
Essential definitions for understanding tokenized renewable energy, blockchain technology, and sustainable investment. This comprehensive glossary covers 40+ key terms to help you navigate the SDA Token ecosystem.
Quick Reference Categories
Blockchain - Technical blockchain and cryptocurrency terms
Energy - Renewable energy and infrastructure terms
Finance - Investment and financial terms
Governance - Voting and decision-making terms
A
Additionality Energy
The principle that carbon credits or impact claims must represent reductions or
benefits that wouldn't have occurred without the specific investment. SDA Token
projects demonstrate additionality by funding renewable infrastructure that wouldn't
exist without tokenized financing.
AML (Anti-Money Laundering) Finance
Regulations and procedures designed to prevent criminals from disguising illegally
obtained funds as legitimate income. SDA Token implements AML checks during the KYC
process to ensure compliance with financial regulations.
Asset-Backed Token Blockchain
A digital token that represents ownership or rights to a physical asset. SDA Token is
backed by real renewable energy infrastructure, providing tangible value beyond
speculation.
Audit Trail Blockchain
A chronological record of all transactions and changes, providing transparency and
accountability. Blockchain technology creates an immutable audit trail for all SDA
Token transactions.
B
Blockchain Blockchain
A distributed ledger technology that records transactions across multiple computers in
a way that makes them tamper-resistant and transparent. SDA Token uses blockchain to
ensure secure, transparent ownership and transfer of renewable energy assets.
Burn (Token Burning) Blockchain
The permanent removal of tokens from circulation. In SDA Token's model, tokens
converted to equity are burned, potentially increasing the value of remaining tokens.
C
Capacity Factor Energy
The ratio of actual energy production to maximum possible production over time. Solar
projects typically achieve 15-25% capacity factors, while wind ranges from 25-50%.
This metric is critical for evaluating SDA Token project performance and revenue
projections.
Carbon Credits Energy
Tradeable certificates representing the right to emit one ton of carbon dioxide.
Renewable energy projects generate carbon credits by displacing fossil fuel emissions,
providing additional revenue for SDA Token holders.
Consensus Mechanism Blockchain
The method by which blockchain networks agree on the validity of transactions. Solana
uses Proof of History combined with Proof of Stake for efficient, secure consensus.
Custody Finance
The safekeeping and administration of financial assets. In blockchain, custody refers
to control over private keys that grant access to tokens. SDA Token supports various
custody solutions from personal wallets to institutional-grade systems.
D
DAO (Decentralized Autonomous Organization)
Governance
An organization governed by smart contracts and token holder voting rather than
traditional management structures. SDA Token incorporates DAO principles in its
governance model.
DeFi (Decentralized Finance)
Blockchain
Financial services built on blockchain technology that operate without traditional
intermediaries. Future SDA Token features may include DeFi integrations for enhanced
liquidity and yield generation.
Distribution (Dividend) Finance
Regular payments to token holders from profits generated by renewable energy sales.
SDA Token automates distributions through smart contracts, ensuring transparent and
timely payments.
E
ESG (Environmental, Social, Governance)
Finance
Investment criteria focusing on environmental protection, social responsibility, and
corporate governance. SDA Token aligns with ESG principles through renewable energy
focus and democratic governance.
Equity Conversion Finance
The process of converting tokens into traditional equity shares in the underlying
company. SDA Token offers optional equity conversion at specific milestones, providing
flexibility for investors.
F
Fractional Ownership Finance
Dividing ownership of an asset into smaller portions, allowing multiple investors to
own shares. Tokenization enables fractional ownership of renewable energy
infrastructure that would otherwise require millions in capital.
G
Gas Fees Blockchain
Transaction costs on blockchain networks. Solana's low gas fees (typically under
$0.01) make SDA Token transfers and operations economically viable for all holder
sizes.
Grid Parity Energy
The point where renewable energy costs the same or less than fossil fuel-based
electricity without subsidies. Most solar and wind projects now achieve grid parity,
making SDA Token investments economically competitive with traditional energy sources.
Governance Token Governance
Tokens that grant voting rights in project decisions. SDA Token includes governance
features allowing holders to vote on project selection, capital allocation, and
strategic direction.
H
Hardware Wallet Blockchain
A physical device that stores cryptocurrency private keys offline, providing enhanced
security. Recommended for storing significant SDA Token holdings.
I
Infrastructure Token Blockchain
A token representing ownership or rights in physical infrastructure. SDA Token
pioneered this model for renewable energy, creating a bridge between digital assets
and real-world infrastructure.
K
KYC (Know Your Customer) Finance
Identity verification procedures required by financial regulations. SDA Token
implements KYC to ensure compliance with securities laws and prevent illicit
activities.
L
LCOE (Levelized Cost of Energy) Energy
The total lifetime cost of building and operating a power plant divided by total
energy produced, expressed in $/kWh. LCOE is the standard metric for comparing energy
sources and evaluating the economic viability of SDA Token renewable projects.
Liquidity Finance
The ease with which an asset can be bought or sold without affecting its price.
Tokenization provides liquidity to traditionally illiquid renewable energy
investments.
Lock-up Period Finance
A time period during which tokens cannot be transferred or sold. Some SDA Token
allocations may have lock-up periods to ensure long-term alignment.
M
MiCA (Markets in Crypto-Assets) Finance
European Union regulation framework for crypto-assets. SDA Token's compliance
structure considers MiCA requirements for European operations.
Mint Blockchain
The process of creating new tokens. SDA Token has a fixed maximum supply of 100
million tokens, with controlled minting according to the tokenomics model.
MPC (Multi-Party Computation)
Blockchain
A cryptographic method allowing multiple parties to jointly compute functions over
their inputs while keeping those inputs private. Used in advanced custody solutions
for institutional SDA Token holders.
P
PPA (Power Purchase Agreement) Energy
Long-term contracts between energy producers and buyers guaranteeing electricity
prices. PPAs provide stable revenue for SDA Token's renewable energy projects.
Private Key Blockchain
A cryptographic key that provides access to blockchain assets. Never share your
private key - it's like the password to your SDA Token holdings.
Q
Quadratic Voting Governance
A voting system where the cost of additional votes increases quadratically, balancing
influence between large and small stakeholders. A potential governance model for SDA
Token decisions.
R
REC (Renewable Energy Certificate)
Energy
Tradeable certificates proving that electricity was generated from renewable sources.
RECs provide additional revenue streams for SDA Token projects.
RWA (Real World Assets) Blockchain
Physical assets represented on blockchain. SDA Token bridges the gap between digital
tokens and real-world renewable energy infrastructure.
S
Security Token Blockchain
A digital token that represents ownership in an asset and is subject to securities
regulations. SDA Token is classified as a security token, providing investor
protections.
Smart Contract Blockchain
Self-executing code on a blockchain that automatically enforces agreement terms. SDA
Token uses smart contracts for distributions, governance, and compliance.
Solana Blockchain
A high-performance blockchain platform known for speed and low costs. SDA Token is
built on Solana for efficient, sustainable operations.
SPL Token Blockchain
The token standard on Solana blockchain. SDA Token uses SPL Token-2022 with advanced
features for compliance and governance.
SPV (Special Purpose Vehicle) Finance
A legal entity created to isolate financial risk and hold specific assets. SDA Token
uses SPVs to provide legal separation between projects, ensuring that issues with one
project don't affect others or the broader token ecosystem.
Staking Blockchain
Locking tokens to support network operations or earn rewards. Future SDA Token
features may include staking for additional benefits.
T
Tokenization Blockchain
The process of converting rights to an asset into digital tokens on a blockchain. SDA
Token tokenizes renewable energy infrastructure to democratize investment access.
Tokenomics Blockchain
The economic model governing token supply, distribution, and incentives. SDA Token's
tokenomics balances immediate liquidity with long-term value creation.
Transfer Hook Blockchain
Code that executes during token transfers to enforce rules. SDA Token uses transfer
hooks for compliance checks and restrictions.
V
Validator Blockchain
Network participants who verify and validate blockchain transactions. Solana has
thousands of validators ensuring network security and decentralization.
Vesting Finance
The process by which tokens become available over time. Team and advisor tokens
typically have vesting schedules to ensure long-term alignment.
W
Wallet Blockchain
Software or hardware that stores private keys and enables blockchain transactions. SDA
Token is compatible with major Solana wallets like Phantom and Solflare.
Whitepaper Blockchain
A comprehensive document detailing a project's technology, economics, and vision. The
SDA Token whitepaper provides complete information about the project's implementation.
Y
Yield Finance
The income return on an investment. SDA Token generates yield through distributions
from renewable energy sales, providing sustainable passive income.
Continue Learning: Now that you understand the key terms, explore our comprehensive education guide or visit the official SDA Token platform for investment opportunities.