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Solana Settlement

WalletKit bridges the local credit ledger to the Solana blockchain for USDC top-ups and pool accounting.

note

USDC flows one way into the network. Users top up with USDC and receive Teale Credits. The network does not pay USDC out to users, providers, or devices. See Credit Economy for the full closed-loop model.

Overview​

Teale's credit economy runs on a local ledger by default --- fast, free, and private. When users want more AI than their credit balance covers, they top up with USDC; WalletKit tracks that deposit and credits their wallet. Pool accounting between the network and paying users also settles on Solana in USDC. Credits themselves never leave the network.

[Local Credit Ledger] <---> [WalletBridge] <---> [Solana RPC]
       (fast, free)            (bridge)         (on-chain USDC)

Solana identity​

Key generation​

WalletKit generates a Solana-compatible keypair using BIP39:

  1. A 12 or 24-word mnemonic is generated from cryptographic randomness.
  2. The mnemonic derives a seed using PBKDF2.
  3. The seed derives an Ed25519 keypair (the same curve used for Teale node identity, but a separate keypair).
  4. The public key is encoded as a Base58 Solana address.

The mnemonic and private key are stored in the system Keychain. Users can back up the mnemonic to recover their wallet on a new device.

SolanaIdentity​

The SolanaIdentity type manages:

  • Keypair generation and secure storage
  • Base58 address encoding and display
  • Signing Solana transactions with the private key

Deposits​

The DepositMonitor watches for incoming USDC transfers to the user's Solana address:

  1. It polls the Solana RPC endpoint for new token account transactions.
  2. When a USDC transfer to the user's address is detected, it verifies the transaction signature.
  3. The deposit amount is credited to the local ledger with the on-chain transaction signature stored for reference.

Users deposit by sending USDC to their Teale wallet's Solana address from any Solana wallet or exchange.

Outbound network operations (deprecated for users)​

Prior versions of Teale allowed users to withdraw USDC from their Teale wallet to an external Solana address via a WithdrawalService. User-facing USDC withdrawal is no longer available. Credits are a closed-loop unit redeemable only for AI inference inside the network; they do not cash out to fiat or stablecoins.

The WithdrawalService code path is retained for internal pool operations only (e.g., infrastructure expenses paid from the network treasury). It is not exposed as a user-facing action.

On-chain transaction tracking​

Every deposit and withdrawal records the Solana transaction signature in the local credit ledger (txSignature field on USDCTransaction). This provides:

  • Auditability: Users can verify any deposit or withdrawal on a Solana block explorer.
  • Dispute resolution: On-chain signatures are cryptographic proof of payment.
  • Reconciliation: The local ledger can be reconciled against on-chain history at any time.

WalletBridge​

WalletBridge is the central coordinator that ties everything together:

ComponentResponsibility
SolanaIdentityKeypair management and transaction signing
SolanaRPCServiceHTTP calls to Solana RPC (getBalance, sendTransaction, etc.)
DepositMonitorWatch for incoming USDC transfers
WithdrawalServiceSend USDC to external addresses

WalletBridge exposes a clean interface to the rest of the app. CreditKit calls WalletBridge when it needs to move funds on-chain; the rest of the time, the local ledger handles everything.

Current state​

Teale currently operates with a local credit ledger and optional on-chain settlement:

  • Local transactions (earning from serving inference, spending on remote inference) are recorded in the local JSON ledger. They are instant and free.
  • On-chain settlement is used when users want to deposit external USDC into the pool. Withdrawals of USDC to users are not supported; credits are a closed-loop unit.
  • Future direction: As the network grows, periodic batch settlement may replace per-transaction on-chain writes to reduce fees.

USDC on Solana​

Teale uses USDC (USD Coin) on Solana because:

  • Stable value. USDC is pegged 1:1 to the US dollar. No price volatility.
  • Low fees. Solana transaction fees are typically under $0.01.
  • Fast finality. Solana confirms transactions in roughly 400 milliseconds.
  • Wide support. USDC on Solana is supported by major exchanges and wallets.