Token Standard Guide: Building on Solana vs. Ethereum
A token standard is a set of rules that defines how digital tokens are created, transferred, and managed on a blockchain. Choosing the right standard—like Solana's SPL or Ethereum's ERC-20—determines your token's features, security, and long-term success. This guide explains the technical differences, real costs, and how modern standards like Token-2022 offer new capabilities for creators.
Key Points
- 1A token standard is a blockchain's rulebook for creating and managing digital assets.
- 2Solana's SPL standard enables faster, cheaper transactions (∼$0.0001) versus Ethereum's ERC-20 (∼$5-50).
- 3The new Token-2022 standard adds built-in features like transfer fees and confidential transfers.
- 4Your chosen standard locks in permanent fees; Solana's 0.30% model offers ongoing creator revenue.
- 5Selecting a standard is a foundational, irreversible decision for your project's economics.
What is a Token Standard?
The foundational rulebook for every digital asset.
Think of a token standard as the blueprint or rulebook for a digital asset on a specific blockchain. It's not the token itself, but the set of mandatory functions and data structures that every token following that standard must implement. This ensures all tokens can interact predictably with wallets, decentralized exchanges (DEXs), and other smart contracts on that network.
Without standards, every token would be a unique, incompatible creation. Wallets wouldn't know how to display balances, and swaps would be impossible. Standards create interoperability, which is the foundation of a functional ecosystem. On Solana, the primary standard is the SPL Token standard; on Ethereum, it's ERC-20 for fungible tokens. Choosing a standard means choosing a blockchain's entire ecosystem, speed, and cost structure.
SPL vs. ERC-20 vs. Token-2022: A Detailed Comparison
Breaking down the technical and economic differences.
Here’s how the major token standards stack up, with concrete numbers for creators.
| Feature | Solana SPL Token | Ethereum ERC-20 | Solana Token-2022 |
|---|---|---|---|
| Avg. Transaction Cost | ∼$0.0001 | ∼$5 - $50 (varies with congestion) | ∼$0.0001 |
| Transaction Speed | ~400ms (confirmed) | ~12 seconds to minutes | ~400ms (confirmed) |
| Core Functionality | Minting, transferring, burning | Minting, transferring, approvals | Everything in SPL, plus extensions |
| Key Innovation | Speed & low cost | First-mover ecosystem | Built-in transfer fees, confidential transfers |
| Typical Launch Cost | 0.1 SOL (~$20) on Spawned | $500+ in gas fees alone | Slightly higher than base SPL |
| Creator Fee Model | 0.30% per trade + 0.30% holder rewards (Spawned) | Must be custom-built; often 1%+ | Native support for perpetual fees (e.g., 1%) |
The Bottom Line: SPL offers a performance advantage. Token-2022 builds on this with future-proof features. ERC-20 provides a vast, established network at a high operational cost.
Why Token-2022 is a Major Upgrade for Creators
Token-2022 is an extension of the base SPL standard on Solana, introduced to solve a critical problem: previously, advanced features like transfer fees or interest-bearing tokens required separate, clunky smart contracts. Token-2022 bakes these features directly into the token standard itself via 'extensions.'
For creators, this means:
- Built-in Revenue: You can configure a permanent transfer fee (e.g., 1%) directly in the token's logic. This is how platforms like Spawned ensure a 0.30% creator fee and a 0.30% holder reward post-graduation, without extra contracts.
- New Capabilities: Features like confidential transfers (hiding amounts) or non-transferable tokens (for credentials) are now standard.
- Future-Proofing: As new extensions are developed, Token-2022 tokens can potentially adopt them. If you're building for the long term on Solana, Token-2022 is becoming the new benchmark.
How to Choose the Right Token Standard: A 4-Step Checklist
A practical guide for founders and creators.
This decision impacts your project's cost, community, and capabilities. Follow this checklist.
- Audit Your Needs: List must-have features. Need micro-transactions under $0.01? SPL/Token-2022 is essential. Require deep integration with specific Ethereum DeFi apps? ERC-20 may be necessary.
- Calculate Real Costs: Factor in more than launch. On Ethereum, every user interaction (swap, transfer) costs $5+. On Solana, it's a fraction of a cent. For community-driven tokens, this is critical.
- Plan Your Revenue Model: If you want automated, ongoing fees, a standard that supports it natively (like Token-2022) saves development time and security risks versus building a custom solution on ERC-20.
- Evaluate the Ecosystem: Where is your target audience? Solana excels in high-speed, low-fee consumer apps. Ethereum has strength in institutional DeFi. Your standard choice determines your home base.
How Token Standards Shape Creator Revenue
Your standard dictates how you earn from your token. Here’s how models differ across platforms.
- Base SPL/ERC-20 (Generic): Zero ongoing fees by default. Creators must implement custom, often complex, tax contracts to earn revenue, which can be a security risk.
- pump.fun (SPL): 0% creator fee. Revenue comes from bonding curve mechanics during launch, not from secondary market trades.
- Spawned.com (Token-2022): 0.30% fee per trade to creator + 0.30% to holders during launch. After graduating from the launchpad, a perpetual 1% fee is configured directly into the Token-2022 standard, ensuring sustainable revenue.
- Traditional Launchpads (ERC-20): Often take a large percentage (5-15%) of the initial token supply. They rarely provide a built-in mechanism for ongoing revenue from trading.
Verdict: Which Token Standard Should You Use?
A clear recommendation based on creator economics.
For the majority of new token creators, building on Solana using the Token-2022 standard offers the best combination of low cost, high speed, and future-ready features.
Choose Token-2022 on Solana if: You are launching a community or creator token, need transactions to cost less than a cent, want a built-in and secure revenue model (like the 0.30%/0.30% split on Spawned), and value the ability to add features like confidential transfers later.
Consider ERC-20 on Ethereum only if: Your project is fundamentally tied to Ethereum-specific protocols, your target user base is exclusively institutional, or you are willing to absorb high gas fees for network effects.
For a balanced launch with immediate revenue, holder rewards, and a path to a sustainable Token-2022 model, a platform like Spawned that utilizes this standard from the start is a practical choice.
Ready to Launch with the Right Standard?
Your token's foundation determines its future.
Stop researching and start building. Spawned.com provides a complete launchpad and AI website builder for Solana tokens, leveraging the modern Token-2022 standard.
- Launch Fee: Just 0.1 SOL (∼$20).
- Creator Revenue: Earn 0.30% on every trade from day one.
- Holder Rewards: Distribute 0.30% to your community automatically.
- Future-Proof: Your token graduates with a perpetual 1% fee model baked into the Token-2022 standard.
- AI Website Builder Included: Save $29-99/month on essential web presence.
Launching a token is about more than code—it's about sustainable economics. Build yours on a foundation designed for success.
Related Terms
Frequently Asked Questions
No, you cannot change a token's underlying standard after creation. It is a fundamental, immutable property of the token's smart contract. This is why the initial choice is so critical. You would need to create a completely new token on the desired standard and migrate your community, which is complex and often unsuccessful.
SPL transactions finalize in about 400 milliseconds for a cost of roughly $0.0001. For a social token where users might send small tips or trade frequently, this is essential. On Ethereum, a single trade can cost $20 and take minutes, which severely limits user interaction and community growth for micro-transaction-based projects.
Most major wallets (Phantom, Backpack) and DEXs (Raydium, Orca) now support Token-2022, but you should verify support for specific extensions like transfer fees. Adoption is widespread and growing because Token-2022 is the official upgrade path from Solana Labs. Always check your key tools before launching.
When you launch on Spawned using the Token-2022 standard, the token is configured so that 0.30% of every buy and sell transaction on the open market is sent directly to your creator wallet. This happens automatically at the blockchain level—no middleman holds the funds. It's a sustainable model that aligns creator success with token trading activity.
A **token standard** (like SPL) is the base rulebook. A **token protocol** or **program** is the specific implementation of that standard. For example, the SPL Token program is the core Solana program that creates SPL-standard tokens. Token-2022 is a separate, upgraded program that implements the SPL standard with extensions.
The main 'risk' is that it is newer than the base SPL standard. While it is developed by Solana Labs and audited, some very niche DeFi integrations or older tools might not fully support all its extensions yet. However, for most launchpad and community token use cases, support is robust and the benefits (built-in fees) far outweigh this minimal compatibility consideration.
Creating a base SPL token yourself is technically free aside from transaction costs. However, you get a token with zero built-in revenue, no holder rewards, no launch liquidity, and no website. For 0.1 SOL (~$20), Spawned provides the Token-2022 standard with fee automation, an initial liquidity pool, a 0.30%/0.30% reward system, and an AI-generated website—saving hundreds in development and monthly costs.
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