Web3 & Token Launch Glossary: Your Guide to Crypto Terminology
This glossary defines essential terms for creators launching tokens on Solana and building Web3 projects. Understanding these concepts helps you make informed decisions about tokenomics, launch platforms, and ongoing project management. From basic blockchain vocabulary to Spawned-specific features, this reference clarifies the technical and financial language of token creation.
Key Points
- 1Defines 50+ key terms for Solana token creation and Web3 projects
- 2Explains Spawned's unique features: 0.30% creator revenue, 0.30% holder rewards, 1% post-graduation fees
- 3Clarifies tokenomics concepts like liquidity pools, bonding curves, and Token-2022
- 4Compares launchpad terms: Spawned's AI website builder vs. platform-only alternatives
- 5Includes practical examples of fees, costs, and revenue calculations
Core Blockchain & Solana Concepts
These foundational terms explain how blockchain technology and the Solana network operate.
- Blockchain: A distributed digital ledger that records transactions across many computers. Solana's blockchain processes up to 65,000 transactions per second.
- Wallet: A software application that stores private keys and interacts with blockchains. Examples include Phantom and Solflare for Solana.
- Smart Contract: Self-executing code on a blockchain that automatically enforces agreement terms. Solana smart contracts are called programs.
- Transaction Fee (Gas): The cost to execute operations on a blockchain. Solana fees average $0.00025 per transaction.
- Decentralized Application (dApp): Applications that run on a blockchain rather than centralized servers.
- Token: A digital asset representing value, utility, or ownership on a blockchain. Solana supports SPL (Solana Program Library) tokens.
Token Launch & Creation Fundamentals
Understanding these terms is essential for any creator considering a token launch.
Terms specifically related to creating and launching tokens on platforms like Spawned.
- Launchpad: A platform for creating and launching tokens. Spawned combines token creation with an AI website builder.
- Initial Liquidity: The starting pool of tokens and SOL available for trading at launch. Spawned requires initial liquidity for market stability.
- Bonding Curve: A mathematical formula that determines token price based on supply. Many launchpads use bonding curves for price discovery.
- Liquidity Pool (LP): A smart contract containing paired assets (like token/SOL) that enables trading on decentralized exchanges.
- Liquidity Provider (LP) Tokens: Tokens representing a share in a liquidity pool, which can earn trading fees.
- Fair Launch: A token launch where everyone has equal access without presales or allocations to insiders.
Spawned Platform-Specific Terminology
Spawned introduces several unique features that creators should understand before launching.
Creator Revenue (0.30%): A percentage of every trade that goes directly to the token creator. On Spawned, this is 0.30% per transaction, providing ongoing income. For comparison, pump.fun offers 0% creator revenue.
Holder Rewards (0.30%): An additional 0.30% of each trade distributed proportionally to token holders. This incentivizes holding and creates a sustainable community.
Post-Graduation Fees (1%): After a token reaches certain milestones and "graduates" from the launchpad, Spawned implements a 1% perpetual fee on trades via Token-2022. This sustains platform development while creators retain their 0.30% revenue.
AI Website Builder: Included with every token launch, this tool saves creators $29-99 monthly compared to separate website services. It automatically generates project websites with token integration.
Launch Fee (0.1 SOL): The upfront cost to launch a token on Spawned, approximately $20 at current SOL prices. This covers initial platform costs and AI website generation.
Verdict: For creators seeking sustainable token projects with built-in revenue streams and community incentives, understanding Spawned's specific terminology is essential. The platform's dual focus on token creation and web presence, combined with its revenue-sharing model, offers advantages over single-purpose launchpads.
Tokenomics & Financial Terminology
Token economics (tokenomics) defines how a token functions within its ecosystem. These terms describe financial structures and incentives.
Market Capitalization: The total value of all tokens in circulation, calculated as token price multiplied by total supply. For new tokens, this starts with the initial liquidity pool size.
Fully Diluted Valuation (FDV): The theoretical market cap if all tokens (including locked or future tokens) were circulating. A high FDV relative to current market cap may indicate future selling pressure.
Circulating Supply: The number of tokens currently available for trading, excluding locked, reserved, or future mint tokens.
Vesting Schedule: A timeline that gradually releases tokens to team members, investors, or the treasury to prevent immediate dumping.
Buy/Sell Tax: Additional fees on transactions, sometimes used to fund marketing or development. Spawned's model uses transparent 0.30% fees for creators and holders instead of hidden taxes.
Rug Pull: When developers abandon a project and remove liquidity, leaving investors with worthless tokens. Reputable launchpads like Spawned implement safeguards against this.
Example Calculation: A token with 1,000,000 circulating supply trading at $0.10 has a $100,000 market cap. If it processes $50,000 in daily volume, the creator would earn $150 daily (0.30% of $50,000) on Spawned, while holders receive another $150 distributed among them.
Technical Standards: Token-2022 vs Traditional Tokens
Solana's Token-2022 standard introduces advanced features beyond basic SPL tokens.
SPL Token (Standard): The original Solana token standard with basic functionality for transfers, minting, and burning.
Token-2022 Program: An upgraded token standard with additional features like transfer fees, confidential transfers, and non-transferable tokens.
Transfer Hooks: Smart contract logic that executes automatically when tokens are transferred. Spawned uses this for its fee distribution system.
Memo Program: Allows adding messages to transactions, useful for compliance and tracking.
Comparison: Traditional SPL tokens lack native fee mechanisms, requiring external programs for revenue sharing. Token-2022 builds these features directly into the token, making Spawned's 1% post-graduation fee more efficient and secure. While standard tokens work for simple projects, Token-2022 enables sophisticated tokenomics like Spawned's holder rewards system.
Practical Impact: Creators using Spawned benefit from Token-2022's capabilities without needing technical expertise. The platform handles the complexity while providing advanced features that would require custom development on other launchpads.
Launch Platform Comparison Terminology
These terms help compare different token launch platforms and their business models.
Platform Fees: Charges imposed by the launchpad. Spawned has a 0.1 SOL launch fee (~$20) plus 1% post-graduation fees. Other platforms may charge higher upfront fees or take percentage of raises.
Revenue Share: How trading fees are distributed. Spawned shares 0.30% with creators and 0.30% with holders. Many platforms keep 100% of trading fees.
Graduation Criteria: Requirements to move from launchpad to independent trading. Typically based on market cap, liquidity, or time thresholds.
AI Integration: Automated tools for website creation, marketing, or token management. Spawned includes this at no extra cost, while competitors may charge separately.
Community Features: Built-in tools for engagement, like holder rewards or governance. Spawned's 0.30% holder rewards actively incentivize community participation.
Side-by-Side Comparison: Where pump.fun offers 0% creator revenue and no website tools, Spawned provides 0.30% creator revenue, 0.30% holder rewards, and included AI website builder. The $20 launch fee is competitive, and the post-graduation 1% fee supports ongoing platform development while maintaining creator revenue.
How to Use This Glossary for Your Token Launch
Follow these steps to effectively apply glossary knowledge to your project planning.
Ready to Apply These Concepts? Launch Your Token on Spawned
Now that you understand the terminology, take the next step with Spawned's integrated platform.
Launch with Confidence: Use your new glossary knowledge to make informed decisions about tokenomics, fees, and platform features. Spawned's transparent model—0.30% creator revenue, 0.30% holder rewards, 1% post-graduation fee—gives you predictable economics.
Save on Essential Tools: The included AI website builder eliminates the $29-99 monthly cost of separate website services, while providing professional presentation for your project.
Start Today for 0.1 SOL: Begin your token creation process with a clear understanding of all terms and costs. The $20 launch fee provides access to both token creation and website building tools.
Next Steps: Create your token now or explore detailed platform features to see how Spawned's terminology translates into real functionality for your project.
Frequently Asked Questions
The 0.30% creator revenue is a percentage of every trade that goes directly to the token creator. If your token processes $10,000 in daily trading volume, you earn $30 daily. This provides ongoing income unlike platforms with 0% creator revenue. The fee is automatically distributed via Solana's Token-2022 standard, requiring no manual collection.
Holder rewards distribute 0.30% of each trade proportionally to token holders. Traditional tokenomics might use buy/sell taxes or manual airdrops. Spawned's system is automatic and transparent—each holder receives rewards based on their token percentage. This creates stronger holding incentives than static token distributions.
After graduation (based on market cap and liquidity thresholds), your token continues trading independently. Spawned implements a 1% perpetual fee via Token-2022 to support platform development. You maintain your 0.30% creator revenue, and holders continue receiving 0.30% rewards. The AI website remains active at no additional cost.
At approximately $20, Spawned's 0.1 SOL launch fee is competitive with major launchpads. More importantly, it includes both token creation and an AI website builder that would cost $29-99 monthly separately. Some platforms charge higher upfront fees or take percentage-based cuts of your raise, making Spawned's transparent pricing advantageous.
No technical knowledge is required. Spawned handles all Token-2022 implementation for features like transfer fees, holder rewards, and post-graduation mechanisms. The platform provides a simple interface while leveraging advanced blockchain capabilities that would normally require custom smart contract development.
Yes, the AI website builder generates a professional starting point that you can fully customize. Add your branding, update content, and integrate token widgets. Compared to building from scratch or paying monthly for website services, this included tool saves significant time and money while ensuring Web3 compatibility.
Spawned uses a multi-phase sustainability model: the 0.1 SOL launch fee covers initial costs, the 1% post-graduation fee provides ongoing revenue, and the platform's value proposition attracts continuous users. This differs from platforms relying solely on high upfront fees or taking large percentages of token raises, which can misalign incentives with creators.
Spawned implements multiple safeguards: transparent token contracts, gradual liquidity provisions, and the Token-2022 standard's built-in fee mechanisms that disincentivize abandonment. The platform's revenue model (0.30% creator fees) encourages long-term project maintenance rather than quick exits. However, creators should still conduct due diligence on any token project.
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